Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/273835 
Year of Publication: 
2023
Series/Report no.: 
Tinbergen Institute Discussion Paper No. TI 2023-024/VIII
Publisher: 
Tinbergen Institute, Amsterdam and Rotterdam
Abstract: 
Using data for 134 locations in New Zealand, we study the effects of crime and agglomeration on urban amenity. We find that crime has significant negative effects on the value of urban amenity, with elasticities of approximately ?0.06 for firms and ?0.09 for workers. To put this effect in context, this implies the value of urban amenity for workers is approximately 2–3 times more sensitive to crime than average temperature. More uniquely, we find that controlling for crime leads to somewhat larger estimates of agglomeration economies. Together, these results suggest that crime detracts significantly from the value of urban amenity and may also act as an urban congestion cost that serves to undermine agglomeration economies.
Subjects: 
crime
urban development
agglomeration economies
amenity
New Zealand
JEL: 
R21
R31
C11
Document Type: 
Working Paper

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