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Anti-Crime Laws and Retail Prices

Listed author(s):
  • Hakan Yilmazkuday

    ()

    (Department of Economics, Florida International University)

The fear of becoming a victim of crime acts like barriers to retail trade for consumers, where retailers attempt to reduce such barriers by enduring additional costs such as insurance or security/surveillance costs; as a result, retail prices are affected by the possibility of crime. This paper attempts to measure such effects by considering the recent experience of the County of Sacramento, where an anti-panhandling ordinance has been issued to protect the retailers. As an application, a difference-in-difference approach is employed to identify the effects of the ordinance on Sacramento gasoline prices at the retail level, by considering the gasoline prices in neighbor counties as the control group of a natural experiment. The results show that the anti-panhandling ordinance has resulted in lower gasoline prices in the County of Sacramento.

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File URL: http://economics.fiu.edu/research/working-papers/2017/1702/1702.pdf
File Function: First version, 2017
Download Restriction: no

Paper provided by Florida International University, Department of Economics in its series Working Papers with number 1702.

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Length: 33 pages
Date of creation: Mar 2017
Handle: RePEc:fiu:wpaper:1702
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Web page: http://economics.fiu.edu

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  1. Patricia K. Smith, 2005. "Economics of Anti-Begging Regulations," American Journal of Economics and Sociology, Wiley Blackwell, vol. 64(2), pages 549-577, 04.
  2. 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.
  3. Ambarish Chandra & Mariano Tappata, 2011. "Consumer search and dynamic price dispersion: an application to gasoline markets," RAND Journal of Economics, RAND Corporation, vol. 42(4), pages 681-704, December.
  4. Abrantes-Metz, Rosa M. & Froeb, Luke M. & Geweke, John & Taylor, Christopher T., 2006. "A variance screen for collusion," International Journal of Industrial Organization, Elsevier, vol. 24(3), pages 467-486, May.
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