Resisting the Extortion Racket: an Empirical Analysis
Michele Battisti (),
Andrea Lavezzi (),
Lucio Masserini and
Authors registered in the RePEc Author Service: Davide Fiaschi ()
Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy
In this paper we study the decision of rms operating in areas where organised crime is pervasive to resist the extortion racket. To this purpose we design a case-control study starting from the unique ex- perience of Addiopizzo (AP), an NGO operating in Palermo (Sicily) which, from 2004, invites rms to resist to the racketeers and join a public list aimed at eliciting critical consumption in favour of rms in the list. We study the determinants of the decision to join AP by estimating a two-level logistic regression model. We nd that rm's total assets and rm's age have a negative effect on the probability of joining AP, while a higher level of human capital embodied in the rm and a higher number of employees increases such probability. Among the district-level variables, we nd that the share of district population reduces the probability to join, while a higher level of socio-economic development, including education levels, increase the probability. We posit that these results support the hypothesis that the decision to join AP is based on a cost-bene t analysis and discuss policy implications of our results.
Keywords: Markov Matrix; Occupational Mobility; Opportunities; Mobility Indexes. (search for similar items in EconPapers)
Note: ISSN 2039-1854
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Journal Article: Resisting the extortion racket: an empirical analysis (2018)
Working Paper: Resisting to the Extortion Racket: an Empirical Analysis (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pie:dsedps:2015/206
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