Assessing the benefits of robbery reduction: The case of a large Brazilian city
We estimate willingness to pay (WTP) for a first-order stochastic reduction on the risk of robbery at a large city in Brazil. We develop a structural choice model that nests a process of contingent valuation among non-degenerate lotteries and estimate it by both maximum likelihood and geographically...
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| Format: | Article |
| Language: | English |
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Emerald Publishing
2019-01-01
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| Series: | EconomiA |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S1517758018300134 |
| _version_ | 1818501402816675840 |
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| author | Diego de Maria Andre José Raimundo Carvalho |
| author_facet | Diego de Maria Andre José Raimundo Carvalho |
| author_sort | Diego de Maria Andre |
| collection | DOAJ |
| description | We estimate willingness to pay (WTP) for a first-order stochastic reduction on the risk of robbery at a large city in Brazil. We develop a structural choice model that nests a process of contingent valuation among non-degenerate lotteries and estimate it by both maximum likelihood and geographically weighted regression (GWR) using a dataset from the city of Fortaleza that contains a precise measurement of individual's subjective probability of victimization among detailed socioeconomic measurement, willingness to pay, and police presence variables. Expected loss, gender, age, education, and perception of patrolling explain WTP. Our global model estimated a mean WTP of R$ 19.23 (U$ 10.33) per month. Our local model, estimated by GWR, suggests that there is a reasonable amount of spatial heterogeneity that follows the city's socioeconomic spatial distribution profile. Although the city's northwest periphery presents higher WTP, as long as we go inwards, there is plenty of heterogeneity on its spatial distribution. Our results support a theory of crime with an active role for victim's (costly) precautions influenced by socioeconomic spatial heterogeneity. JEL classification: O18, Q51, C31, Keywords: Urban crime, Contingent valuation, Spatial effects |
| first_indexed | 2024-12-10T20:55:42Z |
| format | Article |
| id | doaj.art-363cb8fa87484f1d89a859c87298b0c2 |
| institution | Directory Open Access Journal |
| issn | 1517-7580 |
| language | English |
| last_indexed | 2024-12-10T20:55:42Z |
| publishDate | 2019-01-01 |
| publisher | Emerald Publishing |
| record_format | Article |
| series | EconomiA |
| spelling | doaj.art-363cb8fa87484f1d89a859c87298b0c22022-12-22T01:33:57ZengEmerald PublishingEconomiA1517-75802019-01-012014472Assessing the benefits of robbery reduction: The case of a large Brazilian cityDiego de Maria Andre0José Raimundo Carvalho1Federal University of Rio Grande do Norte (UFRN – PPECO), Av. Sen. Salgado Filho, 3000 Lagoa Nova, 59078-970 Natal, RN, Brazil; Laboratório de Econometria – LECO/CAEN, Avenida da Universidade, 2762 2̊ andar Benfica, 60020-181 Fortaleza, CE, BrazilFederal University of Ceará (UFC – CAEN), Avenida da Universidade, 2762 2̊ andar Benfica, 60020-181 Fortaleza, CE, Brazil; Laboratório de Econometria – LECO/CAEN, Avenida da Universidade, 2762 2̊ andar Benfica, 60020-181 Fortaleza, CE, Brazil; Corresponding author.We estimate willingness to pay (WTP) for a first-order stochastic reduction on the risk of robbery at a large city in Brazil. We develop a structural choice model that nests a process of contingent valuation among non-degenerate lotteries and estimate it by both maximum likelihood and geographically weighted regression (GWR) using a dataset from the city of Fortaleza that contains a precise measurement of individual's subjective probability of victimization among detailed socioeconomic measurement, willingness to pay, and police presence variables. Expected loss, gender, age, education, and perception of patrolling explain WTP. Our global model estimated a mean WTP of R$ 19.23 (U$ 10.33) per month. Our local model, estimated by GWR, suggests that there is a reasonable amount of spatial heterogeneity that follows the city's socioeconomic spatial distribution profile. Although the city's northwest periphery presents higher WTP, as long as we go inwards, there is plenty of heterogeneity on its spatial distribution. Our results support a theory of crime with an active role for victim's (costly) precautions influenced by socioeconomic spatial heterogeneity. JEL classification: O18, Q51, C31, Keywords: Urban crime, Contingent valuation, Spatial effectshttp://www.sciencedirect.com/science/article/pii/S1517758018300134 |
| spellingShingle | Diego de Maria Andre José Raimundo Carvalho Assessing the benefits of robbery reduction: The case of a large Brazilian city EconomiA |
| title | Assessing the benefits of robbery reduction: The case of a large Brazilian city |
| title_full | Assessing the benefits of robbery reduction: The case of a large Brazilian city |
| title_fullStr | Assessing the benefits of robbery reduction: The case of a large Brazilian city |
| title_full_unstemmed | Assessing the benefits of robbery reduction: The case of a large Brazilian city |
| title_short | Assessing the benefits of robbery reduction: The case of a large Brazilian city |
| title_sort | assessing the benefits of robbery reduction the case of a large brazilian city |
| url | http://www.sciencedirect.com/science/article/pii/S1517758018300134 |
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