Abstract

http://ssrn.com/abstract=1617711
 
 

References (27)



 


 



Estimating the Effect of Crime Risk on Property Values and Time on Market: Evidence from Megan’s Law in Virginia


Raymond T. Brastow


Longwood College

Bennie D. Waller Jr.


Longwood University

Scott Wentland


Longwood University

May 29, 2010


Abstract:     
We examine neighborhood externalities that arise from the perceived risk associated with the proximity of a registered sex offender’s residence. We find large negative externality effects on a property’s price and liquidity, employing empirical techniques that include a fixed-effects OLS model, a correction for sample selection bias and censoring using a Heckman treatment, and a 3SLS model to account for simultaneity bias in the joint determination of a home’s sale price and liquidity. Additionally, we find amplified effects for homes with more bedrooms (a proxy for children) and if the nearby offender is designated by the state as “violent.”

Number of Pages in PDF File: 40

Keywords: Property values, Time on market, Hedonic, Megan's Law, Home Price, Real Estate Externalities

JEL Classification: H80, K42, R23, R31

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Date posted: May 30, 2010 ; Last revised: September 24, 2012

Suggested Citation

Brastow, Raymond T. and Waller, Bennie D. and Wentland, Scott, Estimating the Effect of Crime Risk on Property Values and Time on Market: Evidence from Megan’s Law in Virginia (May 29, 2010). Available at SSRN: http://ssrn.com/abstract=1617711 or http://dx.doi.org/10.2139/ssrn.1617711

Contact Information

Raymond T. Brastow
Longwood College ( email )
School of Business and Economics
Farmville, VA
United States
804-395-2370 (Phone)
804-395-2203 (Fax)
Bennie D. Waller Jr. (Contact Author)
Longwood University ( email )
201 High Street
Farmville, VA 23909
United States
434-395-2046 (Phone)
434-395-2203 (Fax)
Scott Wentland
Longwood University ( email )
201 High Street
Longwood University
Farmville, VA
United States
HOME PAGE: http://www.scottwentland.com
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