Does more crime mean fewer jobs and less economic growth?
AbstractThis 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. Copyright Springer Science+Business Media, LLC 2013
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Bibliographic InfoArticle provided by Springer in its journal European Journal of Law and Economics.
Volume (Year): 36 (2013)
Issue (Month): 1 (August)
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Web page: http://www.springerlink.com/link.asp?id=100264
Crime; Deterrence; Economic variables; Crowding-out effect; K14; C32; E24;
Find related papers by JEL classification:
- K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
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