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Results for favelas (rio de janeiro)

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Author: Frischtak, Claudio

Title: Crime, House Prices, and Inequality: The Effect of UPPs in Rio

Summary: We use a recent policy experiment in Rio de Janeiro, the installation of permanent police stations in low-income communities (or favelas), to quantify the relationship between a reduction in crime and the change in the prices of nearby residential real estate. Using a novel data set of detailed property prices from an online classifi eds website, we fi nd that the new police stations (called UPPs) had a substantial effect on the trajectory of property values and certain crime statistics since the beginning of the program in late 2008. We also fi nd that the extent of inequality among residential prices decreased as a result of the policy. Both of these empirical observations are consistent with a dynamic model of property value in which historical crime rates have persistent effects on the price of real estate.

Details: New York: Federal Reserve Bank of New York, 2012. 48p.

Source: Internet Resource: Staff Report No. 542: Accessed December 3, 2012 at: http://www.newyorkfed.org/research/staff_reports/sr542.pdf

Year: 2012

Country: Argentina

URL: http://www.newyorkfed.org/research/staff_reports/sr542.pdf

Shelf Number: 127112

Keywords:
Crime Prevention
Economics of Crime
Favelas (Rio de Janeiro)
Housing
Policing