On the Distributive Costs of Drug-Related Homicides
We exploit the manifold increase in homicides in 2008–11 in Mexico resulting from its war on organized drug traffickers to estimate the effect of drug-related homicides on housing prices. We use an unusually rich data set that provides national coverage of housing prices and homicides and exploits within-municipality variations. We find that the impact of violence on housing prices is borne entirely by the poor sectors of the population. An increase in homicides equivalent to 1 standard deviation leads to a 3 percent decrease in the price of low-income housing.
Ajzenman, Nicolas; Galiani, Sebastian; and Seira, Enrique
"On the Distributive Costs of Drug-Related Homicides,"
Journal of Law and Economics: Vol. 58
, Article 2.
Available at: http://chicagounbound.uchicago.edu/jle/vol58/iss4/2
Full text not available in ChicagoUnbound.