Violence has become one of the most pressing concerns in Brazilian society, demanding answers from politicians and provoking academic debates. This work uses a hedonic price model to estimate the implicit cost of street violence - for example murder and assault - on a sample of Belo Horizonte's shops and commercial property. Four regressions were carried out, each separately testing the effects of each crime on each specific type of building. Evidence has been collected which suggests that buildings located in violent areas are subject to a depreciation in value.
hedonic price; criminality; costs; Belo Horizonte; urban economics
