Crime in Buenos Aires City: Prices, Welfare and Location

Crime has a negative impact on prices of real estate and households’ welfare and alters their location. This paper confirms this statement and quantifies its magnitude for the city of Buenos Aires. To this aim, two... [ view full abstract ]

Crime has a negative impact on prices of real estate and households’ welfare and alters their location. This paper confirms this statement and quantifies its magnitude for the city of Buenos Aires. To this aim, two complementary methodologies are used: 1) the econometric estimates of hedonic prices and 2) the evaluation of welfare change and economic agents’ relocation using a computable general equilibrium model with urban characteristics. Spillover effects and asymmetric impacts have been found between both zones of the city, being the Northern one the relatively more affected zone by crime.