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How Local is the Crime Effect on House Prices?

  • 24-02-2023
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Abstract

The study examines the relationship between local crime and house prices in Latin America, focusing on Buenos Aires, Mexico City, and São Paulo. It utilizes a unique dataset from Mercado Libre, the largest e-commerce platform in the region, to analyze the impact of crime on property values. The authors employ an instrumental variable approach to address endogeneity issues and find that a 1% increase in crime is associated with a 0.2% to 1% decrease in average house prices. The research highlights the importance of understanding this relationship for policy-making and urban development strategies in the region.

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Title
How Local is the Crime Effect on House Prices?
Authors
Paula Margaretic
Juan Bautista Sosa
Publication date
24-02-2023
Publisher
Springer US
Published in
The Journal of Real Estate Finance and Economics / Issue 4/2025
Print ISSN: 0895-5638
Electronic ISSN: 1573-045X
DOI
https://doi.org/10.1007/s11146-023-09941-4
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