Airbnbs against criminals: the effect of Airbnb on crime in Mexico City

Abstract

This thesis analyzes the effect that Airbnb listings have on crime in Mexico City. Using a monthly panel dataset from March 2019 to March 2020 and a shift-share instrumental variables strategy, the study finds that an increase in Airbnb listings has a statistically significant negative effect on property crime. Specifically, a 1% increase in entire-property listings is estimated to reduce property crimes by approximately 1.09%. The findings suggest that this reduction is driven by enhanced informal surveillance and increased local economic activity, which contrasts with the effect of general tourism that is positively associated with crime.