Does Increased Access to Home Mortgage Money Decrease Local Crime Rates? Evidence from San Diego County

38 Pages Posted: 31 Aug 2016 Last revised: 12 Jun 2020

See all articles by W.C. Bunting

W.C. Bunting

Stetson University College of Law

Date Written: June 1, 2020

Abstract


This study provides estimates of the impact of increased access to home mortgage credit on local crime rates and uses national home mortgage loan origination volume as a shift-share instrument for local home mortgage loan origination volume. The focus of the study is San Diego County from 2007-Q1 to 2013-Q1. The regression estimates indicate that increased access to home mortgage loans during this time period had a statistically significant negative impact on local crime rates: the baseline specification suggests that a ten percentage point increase in the growth in home mortgage loan originations decreases the growth in total crime incidents by approximately 2.75 percentage points. This finding is robust to different model specifications.

Keywords: Neighborhood Crime, Mortgage Lending, Community Capital Investment, Bartik Instrument

JEL Classification: R30, K14, C26

Suggested Citation

Bunting, William, Does Increased Access to Home Mortgage Money Decrease Local Crime Rates? Evidence from San Diego County (June 1, 2020). Available at SSRN: https://ssrn.com/abstract=2832589 or http://dx.doi.org/10.2139/ssrn.2832589

William Bunting (Contact Author)

Stetson University College of Law ( email )

1401 61st Street South
Gulfport, FL 33707
United States

HOME PAGE: http://www.stetson.edu/law/faculty/home/will-bunting.php

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