The Effect of the Theo Van Gogh Murder on House Prices in Amsterdam

Tinbergen Institute Discussion Paper No. 07-013/3

IZA Discussion Paper No. 2579

50 Pages Posted: 2 Feb 2007  

Pieter A. Gautier

Free University of Amsterdam; Tinbergen Institute Amsterdam (TIA); IZA Institute of Labor Economics

Arjen Siegmann

VU University Amsterdam

Aico van Vuuren

VU University Amsterdam - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: January 2007

Abstract

This paper estimates the impact of the murder of film maker Theo van Gogh on November 2, 2004, on listed house prices in Amsterdam with a unique dataset. We use an hedonic-market approach to show that general attitudes towards Muslim minorities were negatively affected by the murder. Specifically, we test for an effect on listed house prices in neighborhoods where more than 25% of the people belong to an ethnic minority from a Muslim country (type I). Relative to the other neighborhoods, house prices in type I neighborhoods decreased by on average 3%, with a widening gap over time. The results are robust to several adjustments including changes in the control group. There is no significant difference in the time it takes for houses to be sold in type I versus other neighborhoods. Finally, people belonging to the Muslim minority were more likely to buy and less likely to sell a house in a type I neighborhood after the murder than before.

Keywords: Differences-in-differences, Terror, housing market

JEL Classification: C31, C41, R21, R23, R31

Suggested Citation

Gautier, Pieter A. and Siegmann, Arjen and van Vuuren, Aico, The Effect of the Theo Van Gogh Murder on House Prices in Amsterdam (January 2007). Tinbergen Institute Discussion Paper No. 07-013/3; IZA Discussion Paper No. 2579. Available at SSRN: https://ssrn.com/abstract=960422

Pieter A. Gautier (Contact Author)

Free University of Amsterdam ( email )

Amsterdam, ND North Holland
Netherlands

Tinbergen Institute Amsterdam (TIA) ( email )

Gustav Mahlerplein 117
Amsterdam, 1082 MS
Netherlands

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Arjen Siegmann

VU University Amsterdam ( email )

De Boelelaan 1105
Dept. of Finance
Amsterdam, NOT IN US OR CANADA 1081 HV
Netherlands
+31205986581 (Phone)

HOME PAGE: http://personal.vu.nl/a.h.siegmann

Aico Van Vuuren

VU University Amsterdam - Department of Economics ( email )

De Boelelaan 1105
1081 HV Amsterdam
Netherlands

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