The Cost of Avoiding Crime: The Case of Bogota

Borradores de Economia
Número: 
508
Publicado: 
Clasificación JEL: 
K40, K42, R21
Palabras clave: 
Housing Demand, Crime, Illegal Behavior, Law Enforcement

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We use hedonic price models to estimate the value households are willing to pay to avoid violent crime in the city of Bogotá. We find that households living in the highest socioeconomic level (stratum 6) pay up to 7.2% of their house values in order to pr