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NCJ Number: 136560 Find in a Library
Title: Von Thunen Model of Crime, Casinos and Property Values in New Jersey
Journal: Urban Studies  Volume:28  Issue:5  Dated:(1991)  Pages:673-686
Author(s): A J Buck; J Deutsch; S Hakim; U Spiegel; J Weinblatt
Date Published: 1991
Page Count: 14
Type: Research (Applied/Empirical)
Format: Article
Language: English
Country: United States of America
Annotation: This study tested the effect of casino-related crime on real estate values in 64 New Jersey communities, including Atlantic City.
Abstract: Data were obtained for a 15-year period prior to the establishment of casinos and after casinos were introduced (1978-1986). Crime and police manpower data were obtained from the New Jersey Uniform Crime Reports. Assessment data on real estate, population, and demography were obtained from New Jersey's Division of Local Government Services. Urban economic models used in the study suggest that land values diminish with distance from a central business district which "produces" employment, income, and other amenities. A new industry like casino gaming may be associated with jobs and increased income, and these may increase property values. The size of the increase diminishes with distance from the city center. Applying the models to Atlantic City shows that casinos have brought jobs, additional income, and greater real estate values to the region. Crime, however, has increased at a rate greater than that which existed prior to the casinos. The cost of crime due to casinos, as reflected in unrealized assessed real estate values, appears to be about $5.2m per square mile (1986 prices) in the South Jersey area. Study findings suggest the application of a Von Thunen model to explain the spatial distribution of crime and its effect on real estate values. 28 references, 2 tables, and 3 figures (Author abstract modified)
Main Term(s): Legal gambling; Property values
Index Term(s): Economic analysis of crime; New Jersey
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