“No drugs in my back yard:” The ambivalent reception of cannabis retailers

Bruijn, Larissa Michelle; Ribas, Rafael Pérez

doi:10.1016/j.jebo.2022.05.005

Cited by 3 publications

(3 citation statements)

References 60 publications

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“…For instance, the legalization of cannabis outlets can reduce local crime and improve health care (Bradford & Bradford, 2018; Chang & Jacobson, 2017). However, it can also depreciate property values in their vicinity (Adda et al., 2014; Bruijn & Ribas, 2022). Prostitution might not be different, making its presence and legitimacy vulnerable to bylaws.…”

Section: Introductionmentioning

confidence: 99%

Unveiling the Price of Obscenity: Evidence From Closing Prostitution Windows in Amsterdam

Giambona¹,

Ribas²

2022

J Policy Anal Manage

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Does legitimating sinful activities have a cost? This paper examines the relationship between housing demand and overt prostitution in Amsterdam. In our empirical design, we exploit the spatial discontinuity in the location of brothel windows created by canals, combined with a policy that forcibly closed some of the windows near these canals. To pin down their effect on housing prices, we apply a difference-indiscontinuity (DiD) estimator, which controls for the precise location of brothel windows and the effect of other policies and local developments. Our results show that the housing prices are discontinuous at the bordering canals, and this discontinuity nearly disappears after closures. The discontinuity is also found to decrease with the distance to brothels, disappearing after 300 yards. Our estimates indicate that homes right next to sex workers were 30 percent cheaper before the closures. This result seems unrelated to the presence of other businesses, such as bars and cannabis shops. Instead, the price discount is partly explained by petty crimes. However, 73 percent of the effect remains unexplained after controlling for many forms of crime and risk perception. Our findings suggest that households tend to be against the visible presence of sex workers and related nuisances, reaffirming their marginalization.

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Section: Introductionmentioning

confidence: 99%

Unveiling the Price of Obscenity: Evidence From Closing Prostitution Windows in Amsterdam

Giambona¹,

Ribas²

2022

J Policy Anal Manage

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“…Adda et al. (2014) and Bruijn and Ribas (2022) show that decriminalization of drug possession and sales have positive effects on law enforcement and the local economy, but they also depreciate home values in their surroundings. In terms of mechanisms, our work is broadly related to studies on the influence of perceived risk on property values (Gibbons, 2004; Linden & Rockoff, 2008; Pope, 2008b).…”

Section: Introductionmentioning

confidence: 99%

“…For instance, Funderburg and MacDonald (2010) and Diamond and McQuade (2019) show that affordable housing projects do have social and economic value, but they can exert negative effects on housing demand. Adda et al (2014) and Bruijn and Ribas (2022) show that decriminalization of drug possession and sales have positive effects on law enforcement and the local economy, but they also depreciate home values in their surroundings. 4 In terms of mechanisms, our work is broadly related to studies on the influence of perceived risk on property values (Gibbons, 2004;Linden & Rockoff, 2008;Pope, 2008b).…”

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confidence: 99%

The external cost of prostitution: Evidence from shutting down red light districts in the Netherlands

Giambona

Ribas

2022

Real Estate Economics

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This article examines the value of externalities created by the presence of sex workers in the city. Although a legal paid‐sex industry might contribute to the economy, it may also generate negative externalities. To identify the net impact of overt prostitution, we estimate changes in housing prices following the sudden closure of the two red light districts (RLDs) in the Dutch City of Utrecht. Our results show that the capitalization effect of RLDs is spatially heterogeneous. While some areas are unaffected, others are up to 12% more expensive if far from operating brothels. Interestingly, though, evidence also shows that RLDs increase local employment in a variety of sectors. All the aversion to living near RLDs is instead explained by petty crimes.

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Can You Take Me Higher? No. 110, Drug Decriminalization, and Residential Real Estate Prices

M Joukov

2024

Preprint

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“No drugs in my back yard:” The ambivalent reception of cannabis retailers

Cited by 3 publications

References 60 publications

Unveiling the Price of Obscenity: Evidence From Closing Prostitution Windows in Amsterdam

Unveiling the Price of Obscenity: Evidence From Closing Prostitution Windows in Amsterdam

The external cost of prostitution: Evidence from shutting down red light districts in the Netherlands

Can You Take Me Higher? No. 110, Drug Decriminalization, and Residential Real Estate Prices

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