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Crime and the Quality of Life in Wisconsin Counties

  • STEVEN C. DELLER
  • Thomas Ottem

The impact of crime on the local quality of life of a region is examined. Using the methods suggested by Roback (1982) hedonic pricing analysis is used to examine the effects of eight categories of crime on property values and wages. The hedonic results are then used to calculate the implicit prices of the various types of crime. Prices are computed for both urban and rural areas reflecting differences in lifestyle and the corresponding impact of crime. As expected, crime has a measurable negative cost and lowers overall quality of life in a region and the level of impact varies significantly by type of crime.

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Paper provided by Wisconsin-Madison Agricultural and Applied Economics Department in its series Wisconsin-Madison Agricultural and Applied Economics Staff Papers with number 442.

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Length: 32 pages
Date of creation: Jul 2001
Date of revision:
Handle: RePEc:wop:wisaes:442
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  1. Timothy J. Bartik, 1988. "Measuring the Benefits of Amenity Improvements in Hedonic Price Models," Land Economics, University of Wisconsin Press, vol. 64(2), pages 172-183.
  2. 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.
  3. Dubin, Robin A. & Sung, Chein-Hsing, 1990. "Specification of hedonic regressions: Non-nested tests on measures of neighborhood quality," Journal of Urban Economics, Elsevier, vol. 27(1), pages 97-110, January.
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  7. Phil Graves & James C. Murdoch & Mark A. Thayer & Don Waldman, 1988. "The Robustness of Hedonic Price Estimation: Urban Air Quality," Land Economics, University of Wisconsin Press, vol. 64(3), pages 220-233.
  8. Graves, Philip E., 1979. "A life-cycle empirical analysis of migration and climate, by race," MPRA Paper 19921, University Library of Munich, Germany.
  9. 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.
  10. Cropper, Maureen L & Deck, Leland B & McConnell, Kenneth E, 1988. "On the Choice of Functional Form for Hedonic Price Functions," The Review of Economics and Statistics, MIT Press, vol. 70(4), pages 668-75, November.
  11. Christopher A. Manning, 1988. "The Determinants of Intercity Home Building Site Price Differences," Land Economics, University of Wisconsin Press, vol. 64(1), pages 1-14.
  12. Graves, Philip E., 1980. "Migration and climate," MPRA Paper 19916, University Library of Munich, Germany.
  13. Deller, Steven C. & Tsai, Tsung-Hsiu (Sue), 1998. "An Examination of the Wage Curve: A Research Note," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 28(2).
  14. Smith, Barton A., 1978. "Measuring the value of urban amenities," Journal of Urban Economics, Elsevier, vol. 5(3), pages 370-387, July.
  15. Steven C. Deller & Tsung-Hsiu (Sue) Tsai & David W. Marcouiller & Donald B.K. English, 2001. "The Role of Amenities and Quality of Life In Rural Economic Growth," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(2), pages 352-365.
  16. Paul D. Gottlieb, 1994. "Amenities as an Economic Development Tool: Is there Enough Evidence?," Economic Development Quarterly, , vol. 8(3), pages 270-285, August.
  17. Herzog, Henry W, Jr & Schlottmann, Alan M, 1990. "Valuing Risk in the Workplace: Market Price, Willingness to Pay, and the Optimal Provision of Safety," The Review of Economics and Statistics, MIT Press, vol. 72(3), pages 463-70, August.
  18. Simon Hakim, 1980. "The Attraction of Property Crimes to Suburban Localities: A Revised Economic Model," Urban Studies, Urban Studies Journal Limited, vol. 17(3), pages 265-276, October.
  19. 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.
  20. 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..
  21. Brookshire, David S, et al, 1982. "Valuing Public Goods: A Comparison of Survey and Hedonic Approaches," American Economic Review, American Economic Association, vol. 72(1), pages 165-77, March.
  22. Eugene F. Brigham, 1965. "The Determinants of Residential Land Values," Land Economics, University of Wisconsin Press, vol. 41(4), pages 325-334.
  23. Nelson, Jon P., 1978. "Residential choice, hedonic prices, and the demand for urban air quality," Journal of Urban Economics, Elsevier, vol. 5(3), pages 357-369, July.
  24. V. Kerry Smith & Carol C. S. Gilbert, 1985. "The Valuation of Environmental Risks Using Hedonic Wage Models," NBER Chapters, in: Horizontal Equity, Uncertainty, and Economic Well-Being, pages 359-392 National Bureau of Economic Research, Inc.
  25. Goodman, Allen C., 1998. "Andrew Court and the Invention of Hedonic Price Analysis," Journal of Urban Economics, Elsevier, vol. 44(2), pages 291-298, September.
  26. Goodman, Allen C., 1988. "An econometric model of housing price, permanent income, tenure choice, and housing demand," Journal of Urban Economics, Elsevier, vol. 23(3), pages 327-353, May.
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