Strip Clubs, “Secondary Effects,” and Property Values
نویسندگان
چکیده
The “secondary effects” doctrine allows municipalities to zone, or otherwise regulate, sexually oriented businesses like strip clubs. Negative “secondary effects” (externalities) justify limiting First Amendment protection of speech conducted inside strip clubs. We utilize a repeat sales regression model of housing prices to estimate the causal effect of strip clubs on nearby residential property price appreciation. Using real estate transactions from King County, Washington, we identify the effects of a property being located near a strip club, exploiting the unexpected end of a 17 year moratorium on new strip club openings and multiple legal cases in Seattle to generate exogenous variation in club location. We find no evidence that proximity to a strip club affected residential property price appreciation; strip clubs in Seattle did not have any “secondary effects” on nearby residential property values. JEL Codes: K10, K23, R30, R38, R52 ∗Department of Economics, 1725 State Street La Crosse, WI 54601, USA; Email: [email protected] †College of Business & Economics, 1601 University Ave., PO Box 6025, Morgantown, WV 26506-6025, USA; Email: [email protected]. ‡College of Business & Economics, 1601 University Ave., PO Box 6025, Morgantown, WV 26506-6025, USA; Email: [email protected]
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