On the Distributive Costs of Drug-Related Homicides

Nicolas Ajzenman, Sebastian Galiani and Enrique Seira

No IDB-WP-471, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: There are few reliable estimates of the effects of violence on economic outcomes. This study exploits the manifold increase in homicides in 2008-2011 in Mexico resulting from its war on organized drug traffickers to estimate the effect of drug- related homicides on housing prices. Using an unusually rich dataset that provides national coverage on housing prices and homicides and exploits within- municipality variation, the study finds that the burden of violence affects only the poor. An increase in homicides equivalent to one standard deviation leads to a 3 percent decrease in low-income housing prices. Moreover, the effect on housing prices of long-term increases in crime is 40 percent larger.

JEL-codes: I3 K4 (search for similar items in EconPapers)
Date: 2014-01
New Economics Papers: this item is included in nep-law and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: On the Distributive Costs of Drug-Related Homicides (2015)
Working Paper: On the Distributive Costs of Drug-Related Homicides (2014)
Working Paper: On the Distributive Costs of Drug-Related Homicides (2014)
Working Paper: On the Distributive Costs of Drug-Related Homicides (2014)
Working Paper: On the Distributive Costs of Drug-Related Homicides (2014)
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