@article{ZHANG:196826,
      recid = {196826},
      author = {ZHANG, ZHAOHUA and HITE, DIANE},
      title = {House Value, Crime and Residential Location Choice},
      address = {2015-02},
      number = {1375-2016-109528},
      pages = {39},
      year = {2015},
      abstract = {Households choose where to live by trading off wages,  house prices and local amenities. In this paper, I estimate  the effect of crime on household location choice using a  two-stage residential sorting model which incorporates the  effect of mobility cost. The choice set in this paper is  defined at the level of the metropolitan areas. The results  from the second stage show that people are willing to pay  more to move to a location with lower violent crime  occurrences and are willing to pay more to move to a place  with higher property crime; however, the effect of violent  crime is larger than property crime. When recovering the  willingness to pay (WTP) for the two types of crime using  elasticities, the results show that people are willing to  pay $651 and $977 for a one hundred unit decrease in  violent crime and $23 and $27 for a one hundred unit  increase in property crime for 2005 and 2010 respectively.  The difference in difference results for the sorting model  show that people are willing to pay less to move to a  location in which the police number increases, and pay more  to move to a location where the crime rate decreases while  police force increases. The results of the difference in  difference analysis, shows that the elasticity of WTP for  the increase in police number in the hedonic price model,  is slightly lower than that from the sorting model.},
      url = {http://ageconsearch.umn.edu/record/196826},
      doi = {https://doi.org/10.22004/ag.econ.196826},
}