Social Stigma and Asset Value | Zendy

Gourley Patrick | Zendy

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Social Stigma and Asset Value

Author(s) -

Gourley Patrick

Publication year - 2019

Publication title -

southern economic journal

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.762

H-Index - 58

eISSN - 2325-8012

pISSN - 0038-4038

DOI - 10.1002/soej.12315

Subject(s) - property value , stigma (botany) , value (mathematics) , asset (computer security) , property (philosophy) , psychology , social stigma , economics , social psychology , actuarial science , medicine , computer security , psychiatry , computer science , mathematics , finance , statistics , human immunodeficiency virus (hiv) , philosophy , real estate , epistemology , family medicine

Recent attempts by economists to identify and quantify the effect of social stigma on asset value have often been stymied by confounding mechanisms. I use the unique circumstances surrounding the 1999 Columbine Shooting to estimate the effect of social stigma on asset value. Using a difference‐in‐differences model with property fixed effects, I find the immediate effect of stigma from the Columbine Shooting is 5.7% of a property's value after one year. This implies a $13 million loss from property sales in the year 2000 alone. The results are robust to numerous specifications and synthetic control placebo tests. This suggests that social stigma plays a role in consumer preferences.

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