Public Spending and Organised Crime in Italy - A Panel-Data Analysis Over the Period 1997-2003 (Spesa Pubblica E Criminalità Organizzata in Italia Evidenza Empirica Su Dati Panel Nel Periodo 1997-2003)

Abstract:     
This work presents original results regarding the relationship between economic life and organised crime in Italy. This empirical study is underpinned by some theoretical insights drawn from conflict and rent-seeking theories. Then the paper presents a panel analysis including the twenty Italian regions over the period 1997-2003. The results show that: (a) a significant positive association does exist between investments in real estate sector and the index of organised crime; (b) a significant positive association does exist between public investments and the index of organised crime index; (c) a significant negative association does exist between social protection expenditures and the index of organised crime; (d) a significant negative association does exist between investments in private investments and the index of organised crime.

Note: Downloadable document is in Italian.

Keywords: organised crime, rent-seeking, conflict, monopoly, panel data, Mafia

JEL Classifications: D74, E26, H39, H72, P16

Working Paper Series