NCJ Number
145241
Journal
Journal of Research in Crime and Delinquency Volume: 28 Issue: 3 Dated: (August 1991) Pages: 288-303
Date Published
1991
Length
16 pages
Annotation
This study tested the effect of casino-related crime on real estate values in Atlantic City, New Jersey, and found that all crimes except larceny depressed property values.
Abstract
Applying an empirical model to Atlantic City casinos showed that the frequency of violent crimes, burglaries, and robberies diminished with distance and appeared to have a depressing effect on property values, especially in localities accessible to the central city. The negative effect of crime decreased with distance. The effect of crime on property values appeared to be significantly higher in the postcasino era relative to the precasino era. The discounted value of crime costs resulting from casinos, as reflected in unrealized, assessed real estate values, was determined to be about $24 million per square mile in the 12 accessible localities and $11.2 million per square mile in the 52 less accessible localities. The authors indicate that the findings may encourage regional scientists to consider the adverse effects of crime on property values, in addition to the effects of traditional externalities such as transportation, pollution, and local public expenditures. 21 references, 2 notes, and 5 tables