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Social Stigma and Asset Value

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  • Patrick Gourley

Abstract

Recent attempts by economists to identify and quantify the effect of social stigma on asset value have often been stymied by confounding mechanisms. I use the unique circumstances surrounding the 1999 Columbine Shooting to estimate the effect of social stigma on asset value. Using a difference‐in‐differences model with property fixed effects, I find the immediate effect of stigma from the Columbine Shooting is 5.7% of a property's value after one year. This implies a $13 million loss from property sales in the year 2000 alone. The results are robust to numerous specifications and synthetic control placebo tests. This suggests that social stigma plays a role in consumer preferences.

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  • Patrick Gourley, 2019. "Social Stigma and Asset Value," Southern Economic Journal, John Wiley & Sons, vol. 85(3), pages 919-938, January.
    • Handle: RePEc:wly:soecon:v:85:y:2019:i:3:p:919-938
    DOI: 10.1002/soej.12315
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    2. Patrick Gourley, 2021. "Curb appeal: how temporary weather patterns affect house prices," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 67(1), pages 107-129, August.

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