Abstract

DELGADO FERNANDEZ, Joaquín  and  WENCES NAJERA, Giovanni. Hedonic Valuation of the Insecurity in the Determination of Prices of Housing in Acapulco de Juárez, Guerrero. Econ: teor. práct [online]. 2018, n.49, pp.143-163. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/492018/delgado.

In this paper, we conducted a study on the effect of insecurity on housing prices in Acapulco de Juárez using an econometric model of hedonic prices. To do this, the distance of the most unsafe neighborhood in the city from the housing is considered as the variable that will measure such impact. As in the existing literature, in this model we consider also structural attributes of the housing, as well as amenities that have to do with their location, such as the distance to the beach. Most of the attributes considered in this study turned out to be statistically significant, particularly our most interesting variable, whose coefficient turns out to be positive; so we can impute a loss of value of the housing when it is near the most insecure neighborhood. With this hedonic approach we obtain quantifications of the impact of these factors in the determination of housing prices in Acapulco.

Keywords : Housing valuation; hedonic regression; Acapulco; insecurity; marginal implicit price; Box-Cox transformation; R3; R31.