Security Environment And Asset Pricing

Along with the advancement of urbanization economy is growing at the same time,many social problems also followed,social public security problem is one of important aspects,and has also received extensive attention of the society from all walks of life,and the crime rate as an important indicator of measuring social security,the rapid growth of a threat to social harmony and stability and economic development.Due to the large population in our country,the advancement of urbanization is accelerating population flow,it also makes the social security problem has become increasingly complex,the cost of maintaining social security is becoming more and more high,but how to more effective and more objectively evaluate the cost of crime is an important question,properly evaluate crime cost for government to formulate the corresponding policy also plays a very important role.In addition,as an extremely bad behavior,crime deteriorates the consumption and investment environment,adversely affects the economic and financial development,and aggravates the instability of the financial market.However,it is difficult to measure the cost of crime directly,and the hedonic price model provides a feasible idea for estimating the cost of crime,that is,the higher the crime rate,the lower the asset price.Therefore,this thesis uses the number of first-instance criminal cases adjudicated by PKULAW website to construct regional social security indicators,and studies the impact of social security on real estate prices by using the data of legal house auction on Ali judicial auction website from 2016 to 2019.After controlling a series of factors affecting the real estate price,this thesis finds that the regional social security has a significant impact on the housing price,the worse the regional social security,the lower the housing price.Further using the number of police stations under the Public Security Bureau as a tool variable of social security,the conclusion above is still valid on the basis of weakening the endogenous problem between housing price and social security.Further research found that the crime rate affects asset prices by reducing the net outflow of urban population.In addition,this thesis further analyzes the heterogeneity of the samples.The impact of social security on house prices will be more obvious in areas with high urbanization level,coastal cities,main urban areas,eastern regions and super large and super large cities,indicating that in economically developed areas,the marginal demand of residents for good social security increases,which is then reflected in higher housing prices.Finally,according to the research results of this thesis,relevant policy suggestions are provided.