Revealing “Mafia Inc.”? Financial crisis, organized crime, and the birth of new enterprises

Marco Le Moglie and Giuseppe Sorrenti

No 251, ECON - Working Papers from Department of Economics - University of Zurich

Abstract: We study the investment of organized crime in the legal economy. By using the shock induced on the Italian credit market by the 2007 subprime mortgage crisis, we document how provinces with a high organized crime presence have been impacted less by the crisis in terms of the establishment of new enterprises than provinces with a lower criminal infiltration. We provide evidence that the lower impact of the crisis is consistent with the presence of investments by organized crime in the legal economy. We corroborate this interpretation by comparing our results with the characterization made by the judicial authority of such investments and ruling out possible alternative explanations.

Keywords: Mafia; organized crime; established enterprises; crisis (search for similar items in EconPapers)
JEL-codes: K42 L26 (search for similar items in EconPapers)
Date: 2017-04, Revised 2019-12
New Economics Papers: this item is included in nep-ent, nep-eur and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Journal Article: Revealing "Mafia Inc."? Financial Crisis, Organized Crime, and the Birth of New Enterprises (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:zur:econwp:251

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