Estimating the Peace Dividend: The Impact of Violence on House Prices in Northern Ireland
Timothy Besley, Hannes Mueller
American Economic Review · 2012 · Volume 102 · Issue 2
Abstract
This article exploits data on the pattern of violence across regions and over time to estimate the impact of the peace process in Northern Ireland on house prices. After establishing a negative correlation between killings and house prices, we estimate the parameters of a Markov switching model with conflict and peace as latent states. We use the model to estimate the size of the peace dividend as captured in house price changes. (JEL D74, R23, R31)
Keywords
Conflict, Conflict Resolution, Alliances, Urban, Rural, Regional, and Transportation Economics: Regional Migration, Regional Labor Markets, Population, Neighborhood Characteristics, Housing Supply and Markets
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