THE EFFECT OF MAFIA ON PUBLIC TRANSFERS

Guglielmo Barone () and Gaia Narciso

The Institute for International Integration Studies Discussion Paper Series from IIIS

Abstract: This paper analyzes the impact of organized crime on the allocation of public transfers. We assemble an innovative data set on Italian mafia and public funds to businesses at municipality level and instrument current mafia activity with rainfall in the XIX century and geographical shifters of land productivity. We show that organized crime greatly increases the amount of public funds to businesses. Mafia is also found to lead to episodes of corruption in the public administration sector. Our results suggest that the design of geographically targeted aid policies should take into account local crime conditions.

Keywords: organized crime; public transfers; corruption (search for similar items in EconPapers)
JEL-codes: H4 K4 O17 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2012-04
New Economics Papers: this item is included in nep-eur, nep-his, nep-iue and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: The Effect of Mafia on Public Transfers (2013)
Working Paper: The effect of mafia on public transfers (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:iis:dispap:iiisdp398

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