This Article Full Text (PDF) References Alert me when this article is cited Alert me if a correction is posted Services Email this article to a friend Similar articles in this journal Alert me to new issues of the journal Add to Saved Citations Download to citation manager Add to My Marked Citations Citing Articles Citing Articles via HighWire Citing Articles via Google Scholar Google Scholar Articles by Buck, A. J. Articles by Weinblatt, J. Search for Related Content Social Bookmarking                   What's this?

A Von Thünen Model of Crime, Casinos and Property Values in New Jersey

Department of Economics, Temple University, Philadelphia, PA 19122, USA

Joseph Deutsch

Department of Economics, Bar-Ilan University, Ramat-Gan 52900, Israel

Simon Hakim

Department of Economics, Temple University, Philadelphia, PA 19122, USA

Uriel Spiegel

Department of Economics, Bar-Ilan University, Ramat-Gan 52900, Israel

J. Weinblatt

Department of Economics, Ben Gurion University, Beer-Sheva 84/O5, Israel

Urban economic models suggest that, ceteris paribus, land values diminish with distance from a central business district (CBD) which 'produces' employment, income and other amenities. A new industry like casino gaming may have jobs and increased income associated with it. These amenities will induce an increase in property values. The size of that increase diminishes with distance from the city centre. The new industry may have the negative by-product of crime, which is hypothesised to have a reversed, although systematic, effect upon land values. That is, it pays to live in the hinterlands far from the source of crime. Thus, theoretically, the net effect of amenities as a function of distance from the central city is ambiguous. Applying the model to Atlantic City shows that the casinos have brought jobs, additional income and greater real estate values to the region, but the positive impact diminishes with distance from the city centre. However, crime has increased at a rate greater than that which existed prior to the casinos. The cost of crime resulting from casinos, as reflected in unrealised assessed real estate valuation, appears to be on average $5.2m per square mile in 1986 (current prices) in the South Jersey area. For an average community in the area it would amount in 1986 to a total of approximately $105m.

CiteULike    Connotea    Del.icio.us    Digg    Reddit    Technorati    What's this?

This article has been cited by other articles:

				R. T. Greenbaum and G. E. Tita The Impact of Violence Surges on Neighbourhood Business Activity Urban Stud, December 1, 2004; 41(13): 2495 - 2514. [Abstract] [PDF]

				R. B. TAYLOR The Impact of Crime on Communities The ANNALS of the American Academy of Political and Social Science, May 1, 1995; 539(1): 28 - 45. [Abstract]