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Does increased access to home mortgage money reduce local crime rates? Evidence from San Diego County

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  • Bunting, W.C.

Abstract

This study provides estimates of the impact of increased access to home mortgage credit on local crime rates and uses national home mortgage loan origination volume as an instrument for local home mortgage loan origination volume. The focus of the study is San Diego County from 2007-Q1 to 2013-Q1. The regression estimates indicate that increased access to home mortgage loans during this time period had a statistically significant negative impact on local crime rates: the baseline specification suggests that a ten percentage point increase in the growth in home mortgage loan originations decreases the growth in total crime incidents by approximately 2.75 percentage points. This finding is robust to different model specifications.

Suggested Citation

  • Bunting, W.C., 2020. "Does increased access to home mortgage money reduce local crime rates? Evidence from San Diego County," Regional Science and Urban Economics, Elsevier, vol. 84(C).
    • Handle: RePEc:eee:regeco:v:84:y:2020:i:c:s0166046220302556
    DOI: 10.1016/j.regsciurbeco.2020.103570
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    More about this item

    Keywords

    Neighborhood crime; Mortgage lending; Community capital investment;
    All these keywords.

    JEL classification:

    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation

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