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A Poverty Trap of Crime and Unemployment

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  • Luciano Mauro
  • Gaetano Carmeci

Abstract

We present an overlapping generation growth model with an imperfect labor market where the links among crime, growth and unemployment are jointly considered, both in an endogenous and exogenous set-up. We test the major implications of our theory and verify the two model specifications through the Italian regional data, using the Pooled Mean Group estimator proposed by Pesaran, Shin and Smith (1999 ). The empirical results are in favor of the exogenous version of the model and suggest that crime and unemployment have long-run income level effects. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 11 (2007)
Issue (Month): 3 (08)
Pages: 450-462

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Handle: RePEc:bla:rdevec:v:11:y:2007:i:3:p:450-462

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Cited by:
  1. Neanidis, Kyriakos C. & Papadopoulou, Vea, 2013. "Crime, fertility, and economic growth: Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 91(C), pages 101-121.
  2. Rosetta Lombardo & Marianna Falcone, 2011. "Crime And Economic Performance. A Cluster Analysis Of Panel Data On Italy'S Nuts 3 Regions," Working Papers 201112, Università della Calabria, Dipartimento di Economia, Statistica e Finanza (Ex Dipartimento di Economia e Statistica).
  3. Thomas A. Garrett & Lesli S. Ott, 2008. "City business cycles and crime," Working Papers 2008-026, Federal Reserve Bank of St. Louis.
  4. Eleftherios Goulas & Athina Zervoyianni, 2013. "Economic growth and crime: does uncertainty matter?," Applied Economics Letters, Taylor & Francis Journals, vol. 20(5), pages 420-427, March.
  5. Claudio Detotto & Manuela Pulina, 2013. "Does more crime mean fewer jobs and less economic growth?," European Journal of Law and Economics, Springer, vol. 36(1), pages 183-207, August.
  6. Lanzafame, Matteo, 2013. "Crime and regional growth in Italy," MPRA Paper 44343, University Library of Munich, Germany.
  7. Biagi, Bianca & Brandano, Maria Giovanna & Detotto, Claudio, 2012. "The effect of tourism on crime in Italy: A dynamic panel approach," Economics Discussion Papers 2012-4, Kiel Institute for the World Economy.
  8. Eleftherios Goulas & Athina Zervoyianni, 2013. "The Growth-Crime Relationship: Are There any Asymmetries?," Working Paper Series 54_13, The Rimini Centre for Economic Analysis.
  9. Kumar, Surender, 2013. "Crime and Economic Growth: Evidence from India," MPRA Paper 48794, University Library of Munich, Germany.
  10. OA. Carboni & C. Detotto, 2013. "The economic consequences of crime in Italy," Working Paper CRENoS 201303, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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