Jaakke, Jurgen (2019) The Effect of Prison Proximity on House Prices. Master thesis.
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Abstract
This Master’s thesis studies the effect of prisons on house prices. This effect is estimated using the hedonic price method. The causal effect of closing a penitentiary institution is estimated using a difference-in-difference specification. The results of this research prove that penitentiary institutions have a negative impact on house prices in the vicinity and that closure of a penitentiary institution has a positive effect on house prices. Houses within a 300 meter radius of a penitentiary institution are -3.0% lower valued compared to houses that are outside a 300 meter radius. With almost the same magnitude, closure of a penitentiary institution has a positive effect of 2,8% on house prices within 300 meter. Herewith, it can be concluded that people’s willingness to pay for houses reduces due to close proximity of a penitentiary institution.
| Item Type: | Thesis (Master) |
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| Degree programme: | Real Estate Studies |
| Supervisor: | Daams, M. and Duijn, M. van |
| Date Deposited: | 23 Apr 2020 05:24 |
| Last Modified: | 23 Apr 2020 05:24 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/1116 |
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