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Crime, Location and the Housing Market

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  • Zenou, Yves

    (Research Institute of Industrial Economics (IFN))

Abstract

We highlight the role of commuting cost, location and housing market in crime decision. By assuming that all crimes are committed in the central business district and that criminals create both positive and negative externalities to each other, we find that high wages or large levels of police resources are a natural way to reduce crime. We also find that bigger cities experience higher levels of crime because of the fiercer competition in the housing market. Finally, we show that reducing commuting costs can also reduce crime because the resulting decrease in housing prices is lower for workers than for criminals.

Suggested Citation

  • Zenou, Yves, 2005. "Crime, Location and the Housing Market," Working Paper Series 651, Research Institute of Industrial Economics.
  • Handle: RePEc:hhs:iuiwop:0651
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    References listed on IDEAS

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    1. Edward L. Glaeser & Bruce Sacerdote & José A. Scheinkman, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 507-548.
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    3. Calvo-Armengol, Antoni & Verdier, Thierry & Zenou, Yves, 2007. "Strong and weak ties in employment and crime," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 203-233, February.
    4. Coralio Ballester & Antoni Calvó-Armengol & Yves Zenou, 2006. "Who's Who in Networks. Wanted: The Key Player," Econometrica, Econometric Society, vol. 74(5), pages 1403-1417, September.
    5. Jeffrey R. Kling & Jens Ludwig & Lawrence F. Katz, 2005. "Neighborhood Effects on Crime for Female and Male Youth: Evidence from a Randomized Housing Voucher Experiment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 120(1), pages 87-130.
    6. Thierry Verdier & Yves Zenou, 2004. "Racial Beliefs, Location, And The Causes Of Crime," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 731-760, August.
    7. Steve Gibbons, 2004. "The Costs of Urban Property Crime," Economic Journal, Royal Economic Society, vol. 114(499), pages 441-463, November.
    8. Zenou, Yves & Calvó-Armengol, Antoni & Patacchini, Eleonora, 2005. "Peer Effects and Social Networks in Education and Crime," CEPR Discussion Papers 5244, C.E.P.R. Discussion Papers.
    9. Antoni Calvó-Armengol & Yves Zenou, 2004. "Social Networks And Crime Decisions: The Role Of Social Structure In Facilitating Delinquent Behavior," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 45(3), pages 939-958, August.
    10. Case, A.C. & Katz, L.F., 1991. "The Company You Keep: The Effects Of Family And Neighborhood On Disadvantaged Younths," Harvard Institute of Economic Research Working Papers 1555, Harvard - Institute of Economic Research.
    11. Yves Zenou, 2003. "The Spatial Aspects of Crime," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 459-467, 04/05.
    12. Freeman, Scott & Grogger, Jeffrey & Sonstelie, Jon, 1996. "The Spatial Concentration of Crime," Journal of Urban Economics, Elsevier, vol. 40(2), pages 216-231, September.
    13. Ballester, Coralio & Calvó-Armengol, Antoni & Zenou, Yves, 2004. "Who's Who in Crime Network. Wanted the Key Player," Working Paper Series 617, Research Institute of Industrial Economics.
    14. Edward L. Glaeser, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-160, Spring.
    15. Ihlanfeldt, Keith, 2002. "Spatial mismatch in the labor market and racial differences in neighborhood crime," Economics Letters, Elsevier, vol. 76(1), pages 73-76, June.
    16. Nuno Garoupa, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    17. Garoupa, Nuno, 1997. "The Theory of Optimal Law Enforcement," Journal of Economic Surveys, Wiley Blackwell, vol. 11(3), pages 267-295, September.
    18. Edward L. Glaeser & Bruce Sacerdote, 1999. "Why Is There More Crime in Cities?," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 225-258, December.
    19. Scott South & Kyle Crowder, 1997. "Residential mobility between cities and suburbs: race, suburbanization, and back-to-the-city moves," Demography, Springer;Population Association of America (PAA), vol. 34(4), pages 525-538, November.
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    Cited by:

    1. repec:hal:spmain:info:hdl:2441/6o65lgig8d0qcro9oj5ak8gr4 is not listed on IDEAS
    2. Camille Hemet, 2015. "The local determinants of crime victimization," ERSA conference papers ersa15p1453, European Regional Science Association.
    3. Camille Hémet, 2013. "The Local Determinants of Victimization," AMSE Working Papers 1349, Aix-Marseille School of Economics, France, revised 15 Oct 2013.
    4. ,, 2020. "Unemployment and Crime Victimization: a Local Approach," CEPR Discussion Papers 14947, C.E.P.R. Discussion Papers.
    5. Yves Zenou, 2003. "The Spatial Aspects of Crime," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 459-467, 04/05.
    6. repec:hal:wpspec:info:hdl:2441/6o65lgig8d0qcro9oj5ak8gr4 is not listed on IDEAS
    7. Camille Hémet, 2013. "Birds of a feather cannot always flock together : essays on the socio-economic impacts of local diversity [Qui se ressemble ne s'assemble pas toujours : essais sur les effets socio-économiques de l," SciencePo Working papers Main tel-03522695, HAL.
    8. repec:spo:wpecon:info:hdl:2441/6o65lgig8d0qcro9oj5ak8gr4 is not listed on IDEAS
    9. Camille Hémet, 2013. "Birds of a feather cannot always flock together : essays on the socio-economic impacts of local diversity [Qui se ressemble ne s'assemble pas toujours : essais sur les effets socio-économiques de l," SciencePo Working papers tel-03522695, HAL.

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    More about this item

    Keywords

    Localized Crime; Housing Market; Commuting Cost;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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