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Does more crime mean fewer jobs and less economic growth?

Detotto, Claudio and Pulina, Manuela (2013) Does more crime mean fewer jobs and less economic growth? European Journal of Law and Economics, Vol. 36 (1), p. 183-207. ISSN 0929-1261. eISSN 1572-9990. Article.

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DOI: 10.1007/s10657-012-9334-3

Abstract

This paper employs an Autoregressive Distributed Lags approach to investigate how a set of economic variables and a deterrence variable affect criminal activity. Furthermore, it highlights the extent to which crime is detrimental to economic activity. The case study is Italy for the time span 1970 up to 2004. A Granger causality test is implemented to establish temporal interrelationships. The empirical evidence shows that the lack of deterrence positively affects each type of crime and especially thefts. All crime typologies have a negative effect on legal economic activity, reducing the employment rate. Furthermore, homicides, robbery, extortion and kidnapping have a crowding-out effect on economic growth.

Item Type:Article
ID Code:9604
Status:Published
Refereed:Yes
Uncontrolled Keywords:Crime, deterrence, economic variables, crowding-out effect
Subjects:Area 13 - Scienze economiche e statistiche > SECS-P/01 Economia politica
Divisions:001 Università di Sassari > 01-a Nuovi Dipartimenti dal 2012 > Scienze economiche e aziendali
Publisher:© Springer Science+ Business Media, LLC 2012
ISSN:0929-1261
eISSN:1572-9990
Deposited On:05 Feb 2014 09:33

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