The impact of crime on housing land prices and the effects of police boxes and voluntary groups on crime prevention in Japan
AbstractMany people now fear crime in Japan, which has had the image of being a safe country, because the crime rate has increased dramatically and the rate of crime detection has decreased at the same time. As demand for low-crime residential areas becomes stronger, low-crime rates may affect land prices in Japan. High levels of land prices may reflect the high economic value of low-crime neighborhoods. However, the Ordinary Least Square (OLS) estimate may cause a bias because the crime rate is not necessarily an exogenous determinant of land price. Therefore, in this study, we adopt the instrumental variable (IV) method, and use instrumental variables such as distance from police boxes and existence of voluntary anti-crime groups, and analyze the effects of property crime rates on residential land prices. The results show that a 10% decrease in the rate of burglaries causes an average rise in residential land prices of 1%.
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Bibliographic InfoPaper provided by School of Economics, Kwansei Gakuin University in its series Discussion Paper Series with number 60.
Length: 42 pages
Date of creation: Oct 2010
Date of revision: Oct 2010
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Property Crime; Police box; Voluntary crime-prevention group; Instrumental Variable; Propensity Score Matching;
Find related papers by JEL classification:
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R22 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Other Demand
- R28 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Government Policy
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