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Crime victimization, neighborhood safety and happiness in China

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  • Cheng, Zhiming
  • Smyth, Russell

Abstract

We examine the relationship between happiness, crime victimization and neighborhood safety in China. We find that being a victim of crime, and having an acquaintance who is a victim of crime, have a negative effect on happiness. The cost of compensating someone who is a victim of crime, such that they are returned to the same position as if they had not been victimized, is similar to the cost of compensating someone who has an acquaintance who is a victim of crime (around 60% of annual household income). Females who are victims of crime, and victims of out-of-home theft and assault/threat, feel less victimized if they have an acquaintance who is also a victim of crime with whom to share their experience. Living in a safe neighborhood has a positive effect on happiness. The amount needed to compensate someone for living in an unsafe, or neutral neighborhood, as opposed to safe neighborhood, is 1500% of annual household income, which is much higher than the shadow price suggested in studies for the United States and United Kingdom.

Suggested Citation

  • Cheng, Zhiming & Smyth, Russell, 2015. "Crime victimization, neighborhood safety and happiness in China," Economic Modelling, Elsevier, vol. 51(C), pages 424-435.
    • Handle: RePEc:eee:ecmode:v:51:y:2015:i:c:p:424-435
    DOI: 10.1016/j.econmod.2015.08.027
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    Cited by:

    1. Melek Cigdem-Bayram, 2018. "Responding to high crime rates: what is the mix of prevention, insurance and mitigation individuals choose and its results?," Technical papers 201803, Infrastructure Victoria.
    2. repec:spr:jhappi:v:19:y:2018:i:1:d:10.1007_s10902-016-9814-1 is not listed on IDEAS
    3. Cheng, Zhiming & King, Stephen P. & Smyth, Russell & Wang, Haining, 2016. "Housing property rights and subjective wellbeing in urban China," European Journal of Political Economy, Elsevier, vol. 45(S), pages 160-174.
    4. Coupé, Tom & Obrizan, Maksym, 2016. "Violence and political outcomes in Ukraine—Evidence from Sloviansk and Kramatorsk," Journal of Comparative Economics, Elsevier, vol. 44(1), pages 201-212.
    5. repec:eee:ecmode:v:68:y:2018:i:c:p:475-483 is not listed on IDEAS
    6. Vujić, Sunčica & Commandeur, Jacques J.F. & Koopman, Siem Jan, 2016. "Intervention time series analysis of crime rates: The case of sentence reform in Virginia," Economic Modelling, Elsevier, vol. 57(C), pages 311-323.
    7. Brenig, Mattheus & Proeger, Till, 2016. "Putting a price tag on security: Subjective well-being and willingness-to-pay for crime reduction in Europe," Center for European, Governance and Economic Development Research Discussion Papers 278, University of Goettingen, Department of Economics.
    8. Rafiq, Shuddhasattwa & Salim, Ruhul & Smyth, Russell, 2016. "The moderating role of firm age in the relationship between R&D expenditure and financial performance: Evidence from Chinese and US mining firms," Economic Modelling, Elsevier, vol. 56(C), pages 122-132.
    9. repec:spr:soinre:v:132:y:2017:i:1:d:10.1007_s11205-015-1218-9 is not listed on IDEAS

    More about this item

    Keywords

    China; Crime victimization; Neighborhood safety; Happiness;

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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