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Organized crime and public spending: a panel data analysis

Maria Berrittella ()
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Maria Berrittella: Università degli Studi di Palermo

Economics of Governance, 2018, vol. 19, issue 2, 119-140

Abstract: Abstract The aim of this paper is to investigate, empirically, what components of public spending imply a decreasing effect on organized crime and what components create opportunities for organized crime, discussing also the role of government efficiency. Using a panel data analysis, the results show a strikingly consistent pattern for the EU Member States. Organized crime mainly operates in the distribution of government spending for local public goods and public provision of private services. There is a decreasing effect on organized crime of the public expenditure devoted to education and social policy. Government efficiency in public spending is beneficial to limit the opportunities of the organized crime.

Keywords: Government efficiency; Organized crime; Panel data regression; Public expenditure (search for similar items in EconPapers)
JEL-codes: C13 H50 K40 P37 (search for similar items in EconPapers)
Date: 2018
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