Working Paper Series
Crime, Location and the Housing Market
Abstract: We highlight the role of commuting cost, location and
housing market in crime decision. By assuming that all crimes are committed
in the central business district and that criminals create both positive
and negative externalities to each other, we find that high wages or large
levels of police resources are a natural way to reduce crime. We also find
that bigger cities experience higher levels of crime because of the fiercer
competition in the housing market. Finally, we show that reducing commuting
costs can also reduce crime because the resulting decrease in housing
prices is lower for workers than for criminals.
Keywords: Localized Crime; Housing Market; Commuting Cost; (follow links to similar papers)
JEL-Codes: J15; K42; R14; (follow links to similar papers)
23 pages, November 9, 2005
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