Crime, House Prices, and Inequality: The Effect of UPPs in Rio
- 1 January 2012
- preprint
- Published by Elsevier BV in SSRN Electronic Journal
Abstract
We use a recent policy experiment in Rio de Janeiro, the installation of permanent police stations in low-income communities (or favelas), to quantify the relationship between a reduction in crime and the change in the prices of nearby residential real estate. Using a novel data set of detailed property prices from an online classifieds website, we find that the new police stations (called UPPs) had a substantial effect on the trajectory of property values and certain crime statistics since the beginning of the program in late 2008. We also find that the extent of inequality among residential prices decreased as a result of the policy. Both of these empirical observations are consistent with a dynamic model of property value in which historical crime rates have persistent effects on the price of real estate.This publication has 13 references indexed in Scilit:
- Pesquisa avaliativa e política de formação de professores: considerações metodológicasPublished by FapUNIFESP (SciELO) ,2017
- Estimating the Peace Dividend: The Impact of Violence on House Prices in Northern IrelandThe American Economic Review, 2012
- Surveying the Aftermath of the Storm: Changes in Family Finances from 2007 to 2009SSRN Electronic Journal, 2011
- Estimates of the Impact of Crime Risk on Property Values from Megan's LawsAmerican Economic Review, 2008
- The Costs of Urban Property CrimeThe Economic Journal, 2004
- Measuring the impact of crime on house pricesApplied Economics, 2001
- A Survey of House Price Hedonic Studies of the Impact of Environmental ExternalitiesJournal of Real Estate Literature, 2001
- The analysis of household surveysPublished by World Bank ,1997
- The Impact of Crime on Urban Residential Property ValuesUrban Studies, 1979
- Sample Selection Bias as a Specification ErrorEconometrica, 1979