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Journal article
Date
2022-03-30
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Economics
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http://dx.doi.org/10.1016/j.jue.2022.103448
Abstract
Understanding how consumers respond to crime offers evidence of how safety perception impacts individuals daily choices and has important implications for economic development of communities. This paper investigates the impact of local crime on subsequent consumer visits to food and entertainment retails using a novel longitudinal dataset with point-specific crime and consumer visit data. We leverage the richness of our data to account for unobserved heterogeneity and time variant confounders through temporal and geographical variation. Our results show that consumers respond more strongly to property and street crimes. The response concentrates on the venue visit decision rather than the intensity of consumption (i.e. duration) in the venue.
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Citation
Hao Fe, Viviane Sanfelice, How bad is crime for business? Evidence from consumer behavior, Journal of Urban Economics, Volume 129, 2022, 103448, ISSN 0094-1190, https://doi.org/10.1016/j.jue.2022.103448.
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Elsevier
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Journal of Urban Economics, Vol. 129
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