IDEAS home Printed from https://ideas.repec.org/p/cep/cepdps/dp0574.html
   My bibliography  Save this paper

The Costs of Urban Property Crime

Author

Listed:
  • Steve Gibbons

Abstract

This paper estimates the impact of recorded domestic property crime on property prices in the London area. Crimes in the Criminal Damage category have a significant negative impact on prices. Burglaries have no measurable impact on prices, even after allowing for the potential dependence of burglary rates on unobserved property characteristics. A one-tenth standard deviation decrease in the local density of criminal damage adds 1 per cent to the price of an average Inner London property. One explanation we offer here is that vandalism, graffiti and other forms of criminal damage motivate fear of crime in the community and may be taken as signals or symptoms of community instability and neighbourhood deterioration in general.

Suggested Citation

  • Steve Gibbons, 2003. "The Costs of Urban Property Crime," CEP Discussion Papers dp0574, Centre for Economic Performance, LSE.
  • Handle: RePEc:cep:cepdps:dp0574
    as

    Download full text from publisher

    File URL: http://cep.lse.ac.uk/pubs/download/dp0574.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Allen Lynch & David Rasmussen, 2001. "Measuring the impact of crime on house prices," Applied Economics, Taylor & Francis Journals, vol. 33(15), pages 1981-1989.
    2. Thaler, Richard, 1978. "A note on the value of crime control: Evidence from the property market," Journal of Urban Economics, Elsevier, vol. 5(1), pages 137-145, January.
    3. Brand, Sam & Price, Richard, 2000. "The economic and social costs of crime," MPRA Paper 74968, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    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. Daniel Cerqueira & Rodrigo R. Soares, 2016. "The Welfare Cost of Homicides in Brazil: Accounting for Heterogeneity in the Willingness to Pay for Mortality Reductions," Health Economics, John Wiley & Sons, Ltd., vol. 25(3), pages 259-276, March.
    2. Paolo Buonanno & Daniel Montolio & Josep Raya-Vílchez, 2013. "Housing prices and crime perception," Empirical Economics, Springer, vol. 45(1), pages 305-321, August.
    3. Soares, Rodrigo R., 2006. "The welfare cost of violence across countries," Journal of Health Economics, Elsevier, vol. 25(5), pages 821-846, September.
    4. Joaquín Delgado & Giovanni Wences, 2020. "A hedonic approach to the valuation of the effect of criminal violence on housing prices in Acapulco City," Empirical Economics, Springer, vol. 59(6), pages 2999-3018, December.
    5. Juan Tomas Sayago-Gomez & Adam Nowak, 2016. "What is Near and Recent in Crime for a Homeowner? The Cases of Denver and Seattle," Working Papers Working Paper 2016-01, Regional Research Institute, West Virginia University.
    6. Anastasia Klimova & Adrian D. Lee, 2014. "Does a Nearby Murder Affect Housing Prices and Rents? The Case of Sydney," The Economic Record, The Economic Society of Australia, vol. 90, pages 16-40, June.
    7. Mattheus Brenig & Till Proeger, 2018. "Putting a Price Tag on Security: Subjective Well-Being and Willingness-to-Pay for Crime Reduction in Europe," Journal of Happiness Studies, Springer, vol. 19(1), pages 145-166, January.
    8. Hua, Nan & Yang, Yang, 2017. "Systematic effects of crime on hotel operating performance," Tourism Management, Elsevier, vol. 60(C), pages 257-269.
    9. 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.
    10. Yeh, Susan, 2015. "Revealing the rapist next door: Property impacts of a sex offender registry," International Review of Law and Economics, Elsevier, vol. 44(C), pages 42-60.
    11. Adriana Villamarin Garcia, 2011. "Prevenir y calcular una estimacion de los costos de la violencia homicida en Colombia," Documentos de CERAC 009108, CERAC -Centro de Recursos para el Análisis de Conflictos.
    12. Brushwood, James & Dhaliwal, Dan & Fairhurst, Douglas & Serfling, Matthew, 2016. "Property crime, earnings variability, and the cost of capital," Journal of Corporate Finance, Elsevier, vol. 40(C), pages 142-173.
    13. Contreras, Víctor & Garay, Urbi & Santos, Miguel Angel & Betancourt, Cosme, 2014. "Expropriation risk and housing prices: Evidence from an emerging market," Journal of Business Research, Elsevier, vol. 67(5), pages 935-942.
    14. Adriana Villamarín García, 2011. "Prevenir y calcular: una estimación de los costos de la violencia homicida en Colombia," Vniversitas Económica 008873, Universidad Javeriana - Bogotá.
    15. Keith Ihlanfeldt & Thomas Mayock, 2010. "Crime and Housing Prices," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 12, Edward Elgar Publishing.
    16. Allen K. Lynch, 2010. "The Economic Costs of Criminal Activity: A Discussion of Methodological Approaches and Empirical Estimates," Chapters, in: Bruce L. Benson & Paul R. Zimmerman (ed.), Handbook on the Economics of Crime, chapter 11, Edward Elgar Publishing.
    17. Vania Ceccato & Mats Wilhemson, 2011. "The impact of crime on apartment prices: evidence of Stockholm, Sweden," ERSA conference papers ersa10p1026, European Regional Science Association.
    18. Laurie J. Bates & Rexford E. Santerre, 2016. "The Market Demand Characteristics Associated with Real Estate Services: Some Evidence from a Panel Data Set of MSAs," The Journal of Real Estate Finance and Economics, Springer, vol. 53(1), pages 77-89, July.
    19. Pope, Devin G. & Pope, Jaren C., 2012. "Crime and property values: Evidence from the 1990s crime drop," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 177-188.
    20. Thomas Y. Mathä & Alessandro Porpiglia & Michael Ziegelmeyer, 2014. "Wealth differences across borders and the effect of real estate price dynamics: Evidence from two household surveys," BCL working papers 90, Central Bank of Luxembourg.

    More about this item

    Keywords

    property prices; crime; social disorder; spatial econometrics;
    All these keywords.

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:cep:cepdps:dp0574. 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: . General contact details of provider: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP .

    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: (email available below). General contact details of provider: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.