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The Impact of Business Improvement Districts on Crime

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  • Faggio, G.

Abstract

This study evaluates the impact of Business Improvement Districts (BIDs) on crime using a novel data set on the total number of BIDs established in England and Wales between 2012-2017. Results indicate that BID areas are, on average, affected by higher levels of crime than other commercial areas, but they experience a drop of 10-11 crimes per quarter following BID formation. The reduction in crime is stronger for shoplifting, anti-social behaviour and public order-related crimes. Effects depends on the intensity of the approach adopted as well as on the amount of resources devoted to crime prevention. The study also provides evidence of diversion effects. As crime declines in BID areas, criminal activity diverts in neighboring commercial areas. Diversion effects are smaller than deterrence effects so that aggregated crime declines.

Suggested Citation

  • Faggio, G., 2022. "The Impact of Business Improvement Districts on Crime," Working Papers 22/03, Department of Economics, City University London.
    • Handle: RePEc:cty:dpaper:22/03
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    File URL: https://openaccess.city.ac.uk/id/eprint/28958/1/Dept_Econ_WP2203.pdf
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    References listed on IDEAS

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    1. Clément de Chaisemartin & Xavier D'Haultfœuille, 2020. "Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects," American Economic Review, American Economic Association, vol. 110(9), pages 2964-2996, September.
    2. Grogger, Jeffrey, 2002. "The Effects of Civil Gang Injunctions on Reported Violent Crime: Evidence from Los Angeles County," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 69-90, April.
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    4. Meltzer, Rachel, 2012. "Understanding Business Improvement District formation: An analysis of neighborhoods and boundaries," Journal of Urban Economics, Elsevier, vol. 71(1), pages 66-78.
    5. Callaway, Brantly & Sant’Anna, Pedro H.C., 2021. "Difference-in-Differences with multiple time periods," Journal of Econometrics, Elsevier, vol. 225(2), pages 200-230.
    6. Brooks, Leah & Strange, William C., 2011. "The micro-empirics of collective action: The case of business improvement districts," Journal of Public Economics, Elsevier, vol. 95(11), pages 1358-1372.
    7. Helsley, Robert W. & Strange, William C., 1999. "Gated Communities and the Economic Geography of Crime," Journal of Urban Economics, Elsevier, vol. 46(1), pages 80-105, July.
    8. Goodman-Bacon, Andrew, 2021. "Difference-in-differences with variation in treatment timing," Journal of Econometrics, Elsevier, vol. 225(2), pages 254-277.
    9. Morifumi Hirao, 2021. "External Diseconomies of Business Improvement Districts: Negative Impact on Residential Property Values – Evidence from the City of Westminster," International Journal of Public Administration, Taylor & Francis Journals, vol. 44(8), pages 648-664, June.
    10. Philip J. Cook & John MacDonald, 2011. "Public Safety through Private Action: an Economic Assessment of BIDS," Economic Journal, Royal Economic Society, vol. 121(552), pages 445-462, May.
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    Cited by:

    1. Stefano Cellini & Francisco Nobre, 2023. "Business Improvement Districts and Housing Markets: Evidence from Neighborhoods in London," School of Economics Discussion Papers 0523, School of Economics, University of Surrey.

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    Keywords

    urban regeneration policy; local government policy; crime;
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