The link between non-property crime and house prices – Evidence from UK street-level data
AbstractThis paper uses street-level data on house sales and crime rates for England and Wales to look at the existence of compensating differentials for crime risk. In terms of identification my strategy relies on the use of non-parametric regional time trends as well as various fixed effects to control for unobserved amenities and regional economic conditions. The results suggest that each additional case of anti-social behavior lowers house prices in the same street by approximately 1% and each additional case of violent crime by 2%. Drug crime does not appear to matter, as does crime outside of the respective street.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 44884.
Date of creation: 25 Oct 2012
Date of revision:
cost of crime; compensating differential; house prices;
Find related papers by JEL classification:
- H40 - Public Economics - - Publicly Provided Goods - - - General
- K00 - Law and Economics - - General - - - General (including Data Sources and Description)
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
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