Violent Crime, Entrepreneurship, and Cities
In: Cities and Entrepreneurship
This paper estimates the impact of violent crime on the location of business activity and entrepreneurship in five US cities. Central to our analysis is the idea that different sectors of the economy will sort into high- and low-crime areas depending on their relative sensitivity to crime. We illustrate this by comparing retail industries to their wholesale counterparts, and high-end restaurants to low-end eateries. Because retail industries are dependent on pedestrian shoppers, they are expected to be especially sensitive to violent crime. Because high-end restaurants are dependent on evening business, they are expected to be especially sensitive to violent crime over the prime dinner hours. Findings indicate that retail, wholesale, high- and low-end restaurants are all more active in areas with higher local rates of violent crime, even after conditioning on an extensive set of model controls. This could arise because violent crime is attracted to our target industries. This also likely reflects that other sectors of the economy outbid our target industries for safer locations (e.g. residential). Further analysis confirms such sorting behavior. Retailers are more likely to locate in safer locations as compared to wholesalers in the same industry. Among restaurants, an increase in violent crime during the prime dinner hours equivalent to the sample max/min range would decrease the high-end share of local restaurants by roughly 40 percentage points. These findings indicate that entrepreneurs take violent crime into account when bidding for locations within a city. These finding also indicate that efforts to make distressed portions of cities more vibrant must give consideration to the need to ensure that such areas are safe.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|This chapter was published in: ||This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number
11899.||Handle:|| RePEc:nbr:nberch:11899||Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Julie Berry Cullen & Steven D. Levitt, 1996.
"Crime, Urban Flight, and the Consequences for Cities,"
NBER Working Papers
5737, National Bureau of Economic Research, Inc.
- Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
- Abadie, Alberto & Dermisi, Sofia, 2008.
"Is Terrorism Eroding Agglomeration Economies in Central Business Districts? Lessons from the Office Real Estate Market in Downtown Chicago,"
Working Paper Series
rwp08-019, Harvard University, John F. Kennedy School of Government.
- Abadie, Alberto & Dermisi, Sofia, 2008. "Is terrorism eroding agglomeration economies in Central Business Districts? Lessons from the office real estate market in downtown Chicago," Journal of Urban Economics, Elsevier, vol. 64(2), pages 451-463, September.
- Alberto Abadie & Sofia Dermisi, 2006. "Is Terrorism Eroding Agglomeration Economies in Central Business Districts? Lessons from the Office Real Estate Market in Downtown Chicago," NBER Working Papers 12678, National Bureau of Economic Research, Inc.
- Eric D. Gould & Bruce A. Weinberg & David B. Mustard, 2002. "Crime Rates And Local Labor Market Opportunities In The United States: 1979-1997," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 45-61, February.
- Edward L. Glaeser & Bruce Sacerdote, 1996.
"Why Is There More Crime in Cities?,"
NBER Working Papers
5430, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Bruce Sacerdote, 1996. "Why is There More Crime in Cities?," Harvard Institute of Economic Research Working Papers 1746, Harvard - Institute of Economic Research.
- Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
- Bollinger, Christopher R. & Ihlanfeldt, Keith R., 2003. "The intraurban spatial distribution of employment: which government interventions make a difference?," Journal of Urban Economics, Elsevier, vol. 53(3), pages 396-412, May.
- Gautier, Pieter A. & Siegmann, Arjen & Van Vuuren, Aico, 2009. "Terrorism and attitudes towards minorities: The effect of the Theo van Gogh murder on house prices in Amsterdam," Journal of Urban Economics, Elsevier, vol. 65(2), pages 113-126, March.
- Gary S. Becker, 1968.
"Crime and Punishment: An Economic Approach,"
Journal of Political Economy,
University of Chicago Press, vol. 76, pages 169.
- Timothy Bates & Alicia Robb, 2007.
"Crime's Impact on the Survival Prospects of Young Urban Small Businesses,"
07-30, Center for Economic Studies, U.S. Census Bureau.
- Timothy Bates & Alicia Robb, 2008. "Crime's Impact on the Survival Prospects of Young Urban Small Businesses," Economic Development Quarterly, , vol. 22(3), pages 228-238, August.
- Isaac Ehrlich, 1973.
"The Deterrent Effect of Capital Punishment: A Question of Life and Death,"
NBER Working Papers
0018, National Bureau of Economic Research, Inc.
- Ehrlich, Isaac, 1975. "The Deterrent Effect of Capital Punishment: A Question of Life and Death," American Economic Review, American Economic Association, vol. 65(3), pages 397-417, June.
- Pope, Jaren C., 2008. "Fear of crime and housing prices: Household reactions to sex offender registries," Journal of Urban Economics, Elsevier, vol. 64(3), pages 601-614, November.
- Dennis Epple & Thomas Romer & Holger Sieg, 2001. "Interjurisdictional Sorting and Majority Rule: An Empirical Analysis," Econometrica, Econometric Society, vol. 69(6), pages 1437-1465, November.
- John J. Donohue & Steven D. Levitt, 2001.
"The Impact Of Legalized Abortion On Crime,"
The Quarterly Journal of Economics,
MIT Press, vol. 116(2), pages 379-420, May.
- John Donohue & Steven Levitt, 2000. "The Impact of Legalized Abortion on Crime," NBER Working Papers 8004, National Bureau of Economic Research, Inc.
- Donohue, John J. & Levitt, Steven D., 2000. "The Impact of Legalized Abortion on Crime," Berkeley Olin Program in Law & Economics, Working Paper Series qt00p599hk, Berkeley Olin Program in Law & Economics.
- Steven D. Levitt, 2004. "Understanding Why Crime Fell in the 1990s: Four Factors that Explain the Decline and Six that Do Not," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 163-190, Winter.
- Morgan Kelly, 2000. "Inequality And Crime," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 530-539, November.
- Epple, Dennis & Romano, Richard E, 1998. "Competition between Private and Public Schools, Vouchers, and Peer-Group Effects," American Economic Review, American Economic Association, vol. 88(1), pages 33-62, March.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberch:11899. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.