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Linking the dots: Housing prices and crime rates across Chinese provinces

Author

Listed:
  • Andy Cheng

    (The Hang Seng University of Hong Kong)

  • Tsun Se Cheong

    (The Hang Seng University of Hong Kong)

  • Michal Wojewodzki

    (Lingnan University)

Abstract

China has witnessed unprecedented economic growth and urbanisation while soaring housing prices and crime rates have become a burning issue. However, the research on the effect of Chinese housing prices on crime remains limited and ignores the endogeneity problem. This study covers all Chinese provinces from 2000 to 2015. By employing the two-step system generalised method of moments, we examine the association between housing prices and crime rates, addressing the endogeneity. We document a significant positive effect of the crime rate on housing prices. Furthermore, we report that economic growth and educational attainment negatively affect criminal activities. The results substantiate strain, disorganisation, and deterrence theories.

Suggested Citation

  • Andy Cheng & Tsun Se Cheong & Michal Wojewodzki, 2025. "Linking the dots: Housing prices and crime rates across Chinese provinces," Economics Bulletin, AccessEcon, vol. 45(1), pages 544-554.
    • Handle: RePEc:ebl:ecbull:eb-24-00046
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    References listed on IDEAS

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    More about this item

    Keywords

    Crime rate; Housing prices; China; Endogeneity; GMM;
    All these keywords.

    JEL classification:

    • R2 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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