The economic consequences of crime in Italy

Oliviero Carboni and Claudio Detotto

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper employs provincial data to study the relationship between several crime typologies, namely murder, theft, robbery and fraud, and economic output in Italy. We employ a spatial econometric approach where the spatial proximity is defined by a measure of physical distance between locations, in order to take into account possible spill-over effects. The model used here combines a spatial autoregressive model with autoregressive disturbances. In modelling the outcome for each location depends on a weighted average of the outcomes of other locations. Outcomes are determined simultaneously. The results of the spatial two stage least square estimation suggest that the homicide rate has a negative impact on Italian gross domestic product while theft, robbery and fraud do not affect economic output and that there are beneficial spill-overs from neighbouring provinces.

Keywords: spatial weights; spatial models; growth; crime; crowding-out effect (search for similar items in EconPapers)
JEL-codes: C31 K10 O18 R11 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-geo, nep-law and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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https://crenos.unica.it/crenos/sites/default/files/WP13-03.pdf (application/pdf)

Related works:
Journal Article: The economic consequences of crime in Italy (2016)
Working Paper: The economic consequences of crime in Italy (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:201303

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