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Anti-Crime Laws and Retail Prices

Author

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  • Yilmazkuday Hakan

    (Department of Economics, Florida International University, Miami, FL33199, USA)

Abstract

The fear of becoming a victim of crime acts as a barrier to retail trade for consumers, where retailers attempt to reduce such barriers by enduring additional costs such as insurance or security/surveillance; as a result, retail prices are affected by the possibility of crime. This paper attempts to measure such effects by considering the recent experience of Sacramento County in California, where an anti-panhandling ordinance has been issued to protect retailers. As an application, a difference-in-difference approach is employed to identify the effects of the ordinance on Sacramento gasoline prices at the retail level, by considering the gasoline prices in neighboring counties as the control group of a natural experiment. The results show that the anti-panhandling ordinance has resulted in lower gasoline prices in Sacramento County.

Suggested Citation

  • Yilmazkuday Hakan, 2017. "Anti-Crime Laws and Retail Prices," Review of Law & Economics, De Gruyter, vol. 13(3), pages 1-18, November.
    • Handle: RePEc:bpj:rlecon:v:13:y:2017:i:3:p:18:n:4
    DOI: 10.1515/rle-2016-0003
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    More about this item

    Keywords

    anti-crime laws; gasoline retail prices; gas-station level analysis; county of Sacramento;
    All these keywords.

    JEL classification:

    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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