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Resisting the Extortion Racket: an Empirical Analysis

Michele Battisti (), Andrea Lavezzi (), Lucio Masserini and Monica Pratesi
Authors registered in the RePEc Author Service: Davide Fiaschi ()

Discussion Papers from Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy

Abstract: 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)
Date: 2015-07-01
Note: ISSN 2039-1854
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Related works:
Journal Article: Resisting the extortion racket: an empirical analysis (2018) Downloads
Working Paper: Resisting to the Extortion Racket: an Empirical Analysis (2014) Downloads
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