The Cost of Avoiding Crime: The Case of Bogotá
We use hedonic price models to estimate the value households are willing to pay to avoidviolent crime in the city of Bogotá. We find that households living in the highestsocioeconomic level (stratum 6) pay up to 7.2% of their house values in order to preventaverage homicide rates from increasing in one standard deviation. Households in stratum 5pay up to 2.4% of their house values to prevent homicide rates from increasing. The resultsindicate the willingness to pay for security by households in Bogotá, and additionally,reveal that a pure public good like security, ends up creating urban private markets thatauction security. These markets imply different levels of access to public goods among thepopulation, and actually, the exclusion of the poorest. We find as well evidence of negativecapitalization of the rate of attacks against life, and positive capitalization of the presenceof police authority.
|Date of creation:||13 Apr 2008|
|Date of revision:|
|Contact details of provider:|| |
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.:
- Alejandro Gaviria & Carmen Pagés-Serra, 1999.
"Patterns of Crime Victimization in Latin America,"
IDB Publications (Working Papers)
4124, Inter-American Development Bank.
- Gyourko, Joseph & Kahn, Matthew & Tracy, Joseph, 1999. "Quality of life and environmental comparisons," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 37, pages 1413-1454 Elsevier.
- Giles Atkinson & Andrew Healey & Susana Mourato, 2005. "Valuing the costs of violent crime: a stated preference approach," Oxford Economic Papers, Oxford University Press, vol. 57(4), pages 559-585, October.
- 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.
- Rosen, Sherwin, 1974. "Hedonic Prices and Implicit Markets: Product Differentiation in Pure Competition," Journal of Political Economy, University of Chicago Press, vol. 82(1), pages 34-55, Jan.-Feb..
- Hunt, Jennifer, 2003.
"Teen Births Keep American Crime High,"
CEPR Discussion Papers
3906, C.E.P.R. Discussion Papers.
- Hunt, Jennifer, 2003. "Teen Births Keep American Crime High," IZA Discussion Papers 757, Institute for the Study of Labor (IZA).
- Jennifer Hunt, 2003. "Teen Births Keep American Crime High," NBER Working Papers 9632, National Bureau of Economic Research, Inc.
- Jennifer Hunt, 2003. "Teen Births Keep American Crime High," Discussion Papers of DIW Berlin 343, DIW Berlin, German Institute for Economic Research.
- Topa, Giorgio, 2001.
"Social Interactions, Local Spillovers and Unemployment,"
Review of Economic Studies,
Wiley Blackwell, vol. 68(2), pages 261-95, April.
- Topa, Giorgio, 1997. "Social Interactions, Local Spillovers and Unemployment," Working Papers 97-17, C.V. Starr Center for Applied Economics, New York University.
- Leonardo Morales & Carlos Medina, 2007.
"Stratification and Public Utility Services in Colombia: Subsidies to Households or Distortion of Housing Prices?,"
ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION,
ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Carlos Medina & Leonardo Morales, 2006. "Stratification and Public Utility Services in Colombia: Subsidies to Households or Distortions on Housing Prices?," BORRADORES DE ECONOMIA 003528, BANCO DE LA REPÚBLICA.
- Carlos Medina & Leonardo Morales, . "Stratification and Public Utility Services in Colombia: Subsidies to Households or Distortions on Housing Prices?," Borradores de Economia 422, Banco de la Republica de Colombia.
- Carlos Medina & Jairo Núñez, 2006. "La Oferta De Servicios Del Sector Financiero Formal En Bogotá," DOCUMENTOS CEDE 003043, UNIVERSIDAD DE LOS ANDES-CEDE.
- Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
- Leonardo Morales Zurita & Fabio Alberto Arias Arbeláez, 2008. "La calidad de la vivienda en Bogotá: Enfoque de precios hedónicos de hogares y de agregados espaciales," REVISTA SOCIEDAD Y ECONOMIA - CIDSE, UNIVERSIDAD DEL VALLE - CIDSE.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- John J. Donohue & Steven D. Levitt, 1999. "Legalized Abortion and Crime," JCPR Working Papers 104, Northwestern University/University of Chicago Joint Center for Poverty Research.
- Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "What causes violent crime?," European Economic Review, Elsevier, vol. 46(7), pages 1323-1357, July.
- Norman Loayza & Pablo Fajnzylber & Daniel Lederman, 2000. "Crime and Victimization: An Economic Perspective," ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION, ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
- Ludwig, Jens & Cook, Philip J, 2001.
" The Benefits of Reducing Gun Violence: Evidence from Contingent-Valuation Survey Data,"
Journal of Risk and Uncertainty,
Springer, vol. 22(3), pages 207-26, May.
- Jens Ludwig & Philip J. Cook, 1999. "The Benefits of Reducing Gun Violence: Evidence from Contingent-Valuation Survey Data," NBER Working Papers 7166, National Bureau of Economic Research, Inc.
- Roback, Jennifer, 1988. "Wages, Rents, and Amenities: Differences among Workers and Regions," Economic Inquiry, Western Economic Association International, vol. 26(1), pages 23-41, January.
- Sherwin Rosen, 2002. "Markets and Diversity," American Economic Review, American Economic Association, vol. 92(1), pages 1-15, March.
- Heinemann, Alessandra & Verner, Dorte, 2006. "Crime and violence in development : a literature review of Latin America and the Caribbean," Policy Research Working Paper Series 4041, The World Bank.
- Carlos Medina D. & Jairo Núñez M., 2006. "La oferta de servicios del sector financiero formal en Bogota?," COYUNTURA SOCIAL 012890, FEDESARROLLO.
When requesting a correction, please mention this item's handle: RePEc:col:000094:004600. 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: (Clorith Angélica Bahos Olivera)
If references are entirely missing, you can add them using this form.