Does Crime Affect Economic Growth?

Detotto, Claudio; Otranto, Edoardo

doi:10.1111/j.1467-6435.2010.00477.x

Cited by 145 publications

(111 citation statements)

References 32 publications

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“…To address this question, we conduct a falsification test, where organized crime is replaced by a measure of normal crime. A natural choice of the latter is intentional homicide, given that such crime is well-reported and given that it has a well-known distortionary effect on growth (e.g., Cárdenas and Rozo 2008;Detotto and Otranto 2010). Our results confirm this effect, whilst also demonstrating that its magnitude is not conditional on the presence or absence of corruption.…”

Section: Robustness To Alternative Measures Of Organized Crimesupporting

confidence: 79%

An empirical analysis of organized crime, corruption and economic growth

2017

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In a companion study, Blackburn et al. (Econ Theory Bull, 2017), we have developed a theoretical framework for studying interactions between organized crime and corruption, with the view of examining the combined effects of these phenomena on economic growth. The analysis therein illustrates that organized crime has a negative effect on growth, but that the magnitude of the effect may be either enhanced or mitigated in the presence of corruption. In this paper we tackle the ambiguity produced by the coexistence of the two illicit activities with an empirical investigation using a panel of Italian regions for the period 1983-2009. We find that organized crime distorts growth less when it coexists with corruption and show our results to be robust to different specifications, measures of organized crime, and estimation techniques.

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Section: Robustness To Alternative Measures Of Organized Crimesupporting

confidence: 79%

An empirical analysis of organized crime, corruption and economic growth

2017

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“…As recently investigated by many scholars, the causal relationship between crime and economy can be bidirectional. For instance, recently Detotto and Otranto (2010) show some evidence about the negative influence of criminal activity on the economic performance, using a state space model for the Italian GDP. The first three types of illegal activity (BKR, EMB and FRI) are typically corporate crimes that can lead to negative spillover effect.…”

Section: Resultsmentioning

confidence: 99%

Cycles in Crime and Economy: Leading, Lagging and Coincident Behaviors

Detotto

Otranto

2011

J Quant Criminol

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In the last decades, the interest in the relationship between crime and business cycle has widely increased. It is a diffused opinion that a causal relationship goes from economic variables to criminal activities, but this causal effect is observed only for some typology of crimes, such as property crimes. In this work we examine the possibility of the existence of some common factors (interpreted as cyclical components) driving the dynamics of Gross Domestic Product and a large set of criminal types by using the nonparametric version of the dynamic factor model. A first aim of this exercise is to detect some comovements between the business cycle and the cyclical component of some typologies of crime, which could evidence some relationships between these variables; a second purpose is to select which crime types are related to the business cycle and if they are leading, coincident or lagging. Italy is the case study for the time span 1991:1–2004:12; the crime typologies are constituted by the 22 official categories classified by the Italian National Statistical Institute. The study finds that most of the crime types show a counter-cyclical behavior with respect to the overall economic performance, and only a few of them have an evident relationship with the business cycle. Furthermore, some crime offenses, such as bankruptcy, embezzlement and fraudulent insolvency, seem to anticipate the business cycle, in line with recent global events

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“…This, in turn, could have implications for the health of the economy, insofar as crime discourages economic growth (Detotto and Otranto 2010). A number of scholars (Akerlof 1998;Nock 1998;Sampson, Laub, and Wimer 2006) have argued that marriage fosters male responsibility and discourages crime.…”

Section: Public Safetymentioning

confidence: 99%

Unequal Family Lives

2018

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Across the Americas and Europe, the family has changed and marriage is in retreat. To answer the question of what is driving these changes and how they impact social and economic inequality, progressives have typically focused on the economic causes of changing family structures, whereas conservatives tend to stress cultural and policy roots. In this illuminating book, an international group of scholars revisit these issues, offering competing and contrasting perspectives from left, center, and right, while also adding a third layer of analysis: namely, the role of gender -changes in women's roles, male employment patterns, and gendered family responsibilities -in driving family change across three continents. Unequal Family Lives: Causes and Consequences in Europe and the Americas adds richness and depth to our understanding of the relationship between family and economics in the United States, Europe, and Latin America. This title is also available as Open Access on Cambridge Core at http://dx

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Does Crime Affect Economic Growth?

Cited by 145 publications

References 32 publications

An empirical analysis of organized crime, corruption and economic growth

An empirical analysis of organized crime, corruption and economic growth

Cycles in Crime and Economy: Leading, Lagging and Coincident Behaviors

Unequal Family Lives

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