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The cost of fear: shadow pricing the intangible costs of crime

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  • Simon Moore
  • Jonathan Shepherd

Abstract

This study employs a cross sectional crime survey of UK residents to estimate the shadow price of victimization with respect to fear of crime. Particular attention is paid to the relationship between household income and fear of crime and potential mediating variables such as neighbourhood deprivation and neighbourhood crime rates. A robust relationship between fear of crime and income is demonstrated having controlled for deprivation and crime rate. Further analyses suggest that a substantial increase in household income is required to offset the threat of physical violence. However, actual victimization (burglary, physical violence and car crime) do not significantly influence fear of crime.

Suggested Citation

  • Simon Moore & Jonathan Shepherd, 2006. "The cost of fear: shadow pricing the intangible costs of crime," Applied Economics, Taylor & Francis Journals, vol. 38(3), pages 293-300.
    • Handle: RePEc:taf:applec:v:38:y:2006:i:3:p:293-300
    DOI: 10.1080/00036840500367781
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    2. Huang, Li & Frijters, Paul & Dalziel, Kim & Clarke, Philip, 2018. "Life satisfaction, QALYs, and the monetary value of health," Social Science & Medicine, Elsevier, vol. 211(C), pages 131-136.
    3. Avdic, Daniel & Bünnings, Christian, 2015. "Does the Burglar Also Disturb the Neighbor? Crime Spillovers on Individual Well-being," Ruhr Economic Papers 540, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    4. Jelnov, Pavel, 2021. "Sunset Long Shadows: Time, Crime, and Perception of Change," IZA Discussion Papers 14770, Institute of Labor Economics (IZA).
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    7. Powdthavee, Nattavudh & van den Berg, Bernard, 2011. "Putting different price tags on the same health condition: Re-evaluating the well-being valuation approach," Journal of Health Economics, Elsevier, vol. 30(5), pages 1032-1043.
    8. Colombo, Emilio & Stanca, Luca, 2014. "Measuring the monetary value of social relations: A hedonic approach," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 50(C), pages 77-87.
    9. John Smith & Olugbenga Ajilore, 2007. "Ethnic Fragmentation and Police Spending: Social Identity and a Public Good," Departmental Working Papers 200708, Rutgers University, Department of Economics.
    10. Cheng, Zhiming & Smyth, Russell, 2015. "Crime victimization, neighborhood safety and happiness in China," Economic Modelling, Elsevier, vol. 51(C), pages 424-435.
    11. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2009. "The 60es turnaround as a test on the causal relationship between sociability and happiness," Econometica Working Papers wp07, Econometica.
    12. Daniel Avdic & Christian Bünnings, 2015. "Does the Burglar Also Disturb the Neighbor? Crime Spillovers on Individual Well-being," Ruhr Economic Papers 0540, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    13. repec:zbw:rwirep:0540 is not listed on IDEAS
    14. Patel, Pankaj C. & Tsionas, Mike G. & Oghazi, Pejvak, 2023. "Compensating income variation in health and subjective well-being for the self-employed," Journal of Business Research, Elsevier, vol. 160(C).
    15. Cheng, Zhiming & Smyth, Russell, 2015. "Sex and happiness," Journal of Economic Behavior & Organization, Elsevier, vol. 112(C), pages 26-32.
    16. Leonardo Becchetti & Elena Giachin Ricca & Alessandra Pelloni, 2012. "The Relationship Between Social Leisure and Life Satisfaction: Causality and Policy Implications," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 108(3), pages 453-490, September.
    17. Nicola Suppa, 2015. "Towards a Multidimensional Poverty Index for Germany," Ruhr Economic Papers 0541, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    18. Andrén, Daniela, 2024. "“Stand by Me”: Unveiling the value of own and others’ mental illness," Working Papers 2024:12, Örebro University, School of Business.
    19. Shaun Da Costa, 2023. "Estimating the value of life expectancy gains in Tanzania using the life satisfaction and model based approaches," Health Economics, John Wiley & Sons, Ltd., vol. 32(5), pages 1040-1063, May.
    20. Powdthavee, Nattavudh, 2008. "Putting a price tag on friends, relatives, and neighbours: Using surveys of life satisfaction to value social relationships," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(4), pages 1459-1480, August.

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