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A Two-Stage Model of the Simultaneous Relationship Between Retail Development and Crime

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  • David R. Bowes

    (Southeastern Louisiana University)

Abstract

This study looks at crime as one potential obstacle to the revitalization of downtown retail areas. High crime in central city neighborhoods may discourage retail development, either because crime against the establishment increases business costs or because crime and the fear of crime drive away potential customers. This study uses a two-equation system to address two seemingly conflicting hypotheses: that crime discourages retail development and that retail development attracts crime. The results of this study have implications for downtown redevelopment strategies. If higher crime does significantly reduce retail development, then no matter what type of programs are implemented to encourage new retail businesses in downtown areas, they may not be effective if there is not also an adequate effort to reduce violent crime.

Suggested Citation

  • David R. Bowes, 2007. "A Two-Stage Model of the Simultaneous Relationship Between Retail Development and Crime," Economic Development Quarterly, , vol. 21(1), pages 79-90, February.
    • Handle: RePEc:sae:ecdequ:v:21:y:2007:i:1:p:79-90
    DOI: 10.1177/0891242406292465
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    References listed on IDEAS

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    1. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    2. Bowes, David R. & Ihlanfeldt, Keith R., 2001. "Identifying the Impacts of Rail Transit Stations on Residential Property Values," Journal of Urban Economics, Elsevier, vol. 50(1), pages 1-25, July.
    3. René Péron, 2001. "The Political Management of Change in Urban Retailing," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 25(4), pages 847-878, December.
    4. Zsolt Becsi, 1999. "Economics and crime in the states," Economic Review, Federal Reserve Bank of Atlanta, vol. 84(Q1), pages 38-56.
    5. Cornwell, Christopher & Trumbull, William N, 1994. "Estimating the Economic Model of Crime with Panel Data," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 360-366, May.
    6. Edward L. Glaeser & Bruce Sacerdote, 1999. "Why Is There More Crime in Cities?," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 225-258, December.
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    Cited by:

    1. Foster, Sarah & Hooper, Paula & Knuiman, Matthew & Bull, Fiona & Giles-Corti, Billie, 2016. "Are liveable neighbourhoods safer neighbourhoods? Testing the rhetoric on new urbanism and safety from crime in Perth, Western Australia," Social Science & Medicine, Elsevier, vol. 164(C), pages 150-157.

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