Abstract:
Leveraging unprecedented austerity cuts, this paper studies how a large-scale reorganization of police resources induced by the closure of over 70% of police stations - while keeping force-wide police strength constant - affects crime, po- lice effectiveness, civilian cooperation, and residents' welfare. Combining geo-referenced police records and victimization survey data, I find that reduced proximity to stations persistently increases violent crime and reduces police effectiveness. A spatial model of crime and policing highlights heterogeneous shifts in criminal activity. Concurrently, I document reduced reporting of non-violent offenses, diminished trust in policing, and lower local house prices. A counterfactual exercise indicates alternative closure policies could have mitigated these adverse consequences.