IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v28y1991i5p673-686.html
   My bibliography  Save this article

A Von Thünen Model of Crime, Casinos and Property Values in New Jersey

Author

Listed:
  • Andrew J. Buck

    (Department of Economics, Temple University, Philadelphia, PA 19122, USA)

  • Joseph Deutsch

    (Department of Economics, Bar-Ilan University, Ramat-Gan 52900, Israel)

  • Simon Hakim

    (Department of Economics, Temple University, Philadelphia, PA 19122, USA)

  • Uriel Spiegel

    (Department of Economics, Bar-Ilan University, Ramat-Gan 52900, Israel)

  • J. Weinblatt

    (Department of Economics, Ben Gurion University, Beer-Sheva 84/O5, Israel)

Abstract

Urban economic models suggest that, ceteris paribus, land values diminish with distance from a central business district (CBD) which 'produces' employment, income and other amenities. A new industry like casino gaming may have jobs and increased income associated with it. These amenities will induce an increase in property values. The size of that increase diminishes with distance from the city centre. The new industry may have the negative by-product of crime, which is hypothesised to have a reversed, although systematic, effect upon land values. That is, it pays to live in the hinterlands far from the source of crime. Thus, theoretically, the net effect of amenities as a function of distance from the central city is ambiguous. Applying the model to Atlantic City shows that the casinos have brought jobs, additional income and greater real estate values to the region, but the positive impact diminishes with distance from the city centre. However, crime has increased at a rate greater than that which existed prior to the casinos. The cost of crime resulting from casinos, as reflected in unrealised assessed real estate valuation, appears to be on average $5.2m per square mile in 1986 (current prices) in the South Jersey area. For an average community in the area it would amount in 1986 to a total of approximately $105m.

Suggested Citation

  • Andrew J. Buck & Joseph Deutsch & Simon Hakim & Uriel Spiegel & J. Weinblatt, 1991. "A Von Thünen Model of Crime, Casinos and Property Values in New Jersey," Urban Studies, Urban Studies Journal Limited, vol. 28(5), pages 673-686, October.
    • Handle: RePEc:sae:urbstu:v:28:y:1991:i:5:p:673-686
    DOI: 10.1080/00420989120080861
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1080/00420989120080861
    Download Restriction: no
    File URL: https://libkey.io/10.1080/00420989120080861?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455, July.
    2. Rosen, Harvey S & Fullerton, David J, 1977. "A Note on Local Tax Rates, Public Benefit Levels, and Property Values," Journal of Political Economy, University of Chicago Press, vol. 85(2), pages 433-440, April.
    3. Hakim, Simon & Buck, Andrew J., 1989. "Do casinos enhance crime?," Journal of Criminal Justice, Elsevier, vol. 17(5), pages 409-416.
    4. repec:bla:scandj:v:81:y:1979:i:2:p:154-73 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karla Hoff & Arijit Sen, 2005. "Homeownership, Community Interactions, and Segregation," American Economic Review, American Economic Association, vol. 95(4), pages 1167-1189, September.
    2. Fleishman Larisa & Gubman Yury & Tur-Sinai Aviad, 2015. "Dwelling Price Ranking versus Socioeconomic Clustering: Possibility of Imputation," Journal of Official Statistics, Sciendo, vol. 31(2), pages 205-229, June.
    3. Deller, Steven C. & Ottem, Thomas D., 2001. "Crime And The Quality Of Life In Wisconsin Counties," Staff Papers 12652, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    4. Robert T. Greenbaum & George E. Tita, 2004. "The Impact of Violence Surges on Neighbourhood Business Activity," Urban Studies, Urban Studies Journal Limited, vol. 41(13), pages 2495-2514, December.
    5. Časni Anita Čeh & Filić Josipa, 2022. "Tourism housing price nexus," Croatian Review of Economic, Business and Social Statistics, Sciendo, vol. 8(2), pages 53-65, December.
    6. Gu, Xinhua & Li, Guoqiang & Chang, Xiao & Guo, Haizhen, 2017. "Casino tourism, economic inequality, and housing bubbles," Tourism Management, Elsevier, vol. 62(C), pages 253-263.
    7. Christopher L Ambrey & Christopher M Fleming & Matthew Manning, 2013. "The life satisfaction approach to estimating the cost of crime: An individual's willingness-to-pay for crime reduction," Discussion Papers in Economics economics:201301, Griffith University, Department of Accounting, Finance and Economics.
    8. Amy Lake & STEVEN DELLER, 1996. "The Socioeconomic Impacts of a Native American Casino," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 403, Wisconsin-Madison Agricultural and Applied Economics Department.
    9. Jörgen Johansson & Krister Sandberg, 2001. "Hedonic Prices for Co-operative Flats in the City of Umeå estimated with Spatial Autoregressive GMM," ERSA conference papers ersa01p111, European Regional Science Association.
    10. Julie Smith, 1999. "Australian Gambling Taxation," CEPR Discussion Papers 402, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    11. Sandberg, Krister, 2002. "On Space-Time Changes of Hedonic Prices for Single Family Houses," ERSA conference papers ersa02p196, European Regional Science Association.
    12. Schwer, Keith & Daneshvary, Rennae, 1999. "The Impact of Casino Gambling on Charitable Contributions: The Willingness to Contribute to a Local Public Television Station," The Review of Regional Studies, Southern Regional Science Association, vol. 29(1), pages 77-90, Summer.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Dekle & Jonathan Eaton, 1994. "Agglomeration and the Price of Land: Evidence from the Prefectures," NBER Working Papers 4781, National Bureau of Economic Research, Inc.
    2. Robin Boadway & Nicolas Marceau & Maurice Marchand, 1996. "Issues in decentralizing the provision of education," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 3(3), pages 311-327, July.
    3. Takatoshi Tabuchi & Jacques-François Thisse, 2006. "Regional Specialization, Urban Hierarchy, And Commuting Costs," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 47(4), pages 1295-1317, November.
    4. Kristof Dascher, 2015. "Foreign Direct Investment into Open and Closed Cities," Scottish Journal of Political Economy, Scottish Economic Society, vol. 62(2), pages 191-210, May.
    5. Tabuchi, Takatoshi, 2023. "Backward-bending labor supply and urban location," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    6. Verhetsel, Ann & Vanelslander, Thierry, 2010. "What location policy can bring to sustainable commuting: an empirical study in Brussels and Flanders, Belgium," Journal of Transport Geography, Elsevier, vol. 18(6), pages 691-701.
    7. Wei-Bin Zhang, 2009. "Agglomeration and Returns to Scale with Capital and Public Goods in a Multi-Regional Economy," International Economic Journal, Taylor & Francis Journals, vol. 23(1), pages 81-109.
    8. Renaud Crassous & Jean Charles Hourcade & Olivier Sassi, 2006. "Endogenous structural change and climate targets," Post-Print halshs-00009335, HAL.
    9. Francois Gusdorf & Stéphane Hallegatte & Alain Lahellec, 2007. "Time and space matter: how urban transitions create inequality," CIRED Working Papers hal-00522404, HAL.
    10. Zenou, Yves & Smith, Tony E., 1995. "Efficiency wages, involuntary unemployment and urban spatial structure," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 547-573, August.
    11. Carl Gaigné & Jacques-François Thisse, 2013. "New Economic Geography and the City," Working Papers SMART 13-02, INRAE UMR SMART.
    12. Berliant, Marcus & Reed III, Robert R. & Wang, Ping, 2006. "Knowledge exchange, matching, and agglomeration," Journal of Urban Economics, Elsevier, vol. 60(1), pages 69-95, July.
    13. Miren Lafourcade & Jacques-François Thisse, 2011. "New Economic Geography: The Role of Transport Costs," Chapters, in: André de Palma & Robin Lindsey & Emile Quinet & Roger Vickerman (ed.), A Handbook of Transport Economics, chapter 4, Edward Elgar Publishing.
    14. Eric A. Hanushek & Kuzey Yilmaz, 2007. "Schools and Location: Tiebout, Alonso, and Government Policy," NBER Working Papers 12960, National Bureau of Economic Research, Inc.
    15. Letrouit,Lucie Michele Maya & Selod,Harris, 2020. "Trust or Property Rights ? Can Trusted Relationships Substitute for Costly Land Registration in West African Cities ?," Policy Research Working Paper Series 9310, The World Bank.
    16. Paulo Reis Mourão & Júlio Miguel Coelho Barbosa, 2009. "La competitividad de las ciudades portuguesas. El caso de las capitales de distrito," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 11(21), pages 205-223, July-Dece.
    17. Céline Grislain-Letrémy & Bertrand Villeneuve, 2019. "Natural disasters, land-use, and insurance," The Geneva Papers on Risk and Insurance Theory, Springer;International Association for the Study of Insurance Economics (The Geneva Association), vol. 44(1), pages 54-86, March.
    18. Wouter Vermeulen & J. van Ommeren, 2006. "Compensation of regional unemployment in housing markets," CPB Discussion Paper 57, CPB Netherlands Bureau for Economic Policy Analysis.
    19. Oshiro, Jun & Sato, Yasuhiro, 2021. "Industrial structure in urban accounting," Regional Science and Urban Economics, Elsevier, vol. 91(C).
    20. Määttänen, Niku & Terviö, Marko, 2014. "Income distribution and housing prices: An assignment model approach," Journal of Economic Theory, Elsevier, vol. 151(C), pages 381-410.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:28:y:1991:i:5:p:673-686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.