Is crime in Mexico a disamenity? Evidence from a hedonic valuation approach

Loveridge Scott () and Dusan Paredes
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Loveridge Scott: Michigan State University, United States

No 64, Documentos de Trabajo en Economia y Ciencia Regional from Universidad Catolica del Norte, Chile, Department of Economics

Abstract: Since Roback (1982)’s seminal work, the literature has evaluated the role of the amenities to equilibrate the regional differentials of nominal wages and prices. While these studies generally find evidence for traditional amenities and disamenities in developed countries, it still exists a scarce exploration on how those characteristics assessed, like violence, affect the equilibrium in less developed countries. In this paper, we explore violence as amenity or disamenity for the case of Mexico as a particular and unique natural experiment. We use the hedonic wage and rent theory proposed by Roback using data from the Mexican Household Income and Expenditure Survey, along with other information at municipal and state level. For our particular hypothesis, we find evidence to support that inhabitants in traditional drug trafficking states could consider drug-related crime as an amenity.

Keywords: Hedonic Valuation; Wages; Rents; Amenities; Crime; Mexico (search for similar items in EconPapers)
JEL-codes: D5 H4 J3 Q2 R1 R2 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2015-09, Revised 2015-09
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (2)

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https://sites.google.com/a/ucn.cl/wpeconomia/archivos/WP2015-11.pdf First version, 2015 (application/pdf)

Related works:
Journal Article: Is crime in Mexico a disamenity? Evidence from a hedonic valuation approach (2017)
Working Paper: Is crime in Mexico a disamenity? Evidence from a hedonic valuation approach (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:cat:dtecon:dt201511

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