English, Article, Journal or magazine article edition: Impactos da criminalidade no valor dos aluguéis em Belo Horizonte [Criminality: the impact on the residential rent prices in Belo Horizonte]. Vinícius Velasco Rondon; Mônica Viegas Andrade

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Bookmark: http://trove.nla.gov.au/version/114524
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Impactos da criminalidade no valor dos aluguéis em Belo Horizonte [Criminality: the impact on the residential rent prices in Belo Horizonte].
Author
  • Vinícius Velasco Rondon
  • Mônica Viegas Andrade
Physical Description
  • preprint
Notes
  • The aim of this paper is to measure part of the indirect costs of criminality in Belo Horizonte. The indirect costs are measured through the analysis of the impact of criminality in residential rent prices. The methodology used is Hedonic Price Models. This methodology allows us to obtain indirectly the price that individuals are able to pay to have access to some goods which markets do not exist. In this work we are interested in estimating the value that individuals pay to live in areas with a higher level of security. In this way we have a proxy to the amount that individuals are able to pay to reduce criminality. The estimation was done using Ordinary Least Squares. We estimated two models to account to different types of crimes: property crimes and murder. The results obtained show that criminality reduce rent prices. Depending on the geographic area, this reduction reaches 27% of full rental price.
  • violence costs; hedonic prices; criminality
  • RePEc:cdp:texdis:td194
Language
  • English
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