IDEAS home Printed from https://ideas.repec.org/a/spr/ecogov/v19y2018i2d10.1007_s10101-018-0206-3.html
   My bibliography  Save this article

Organized crime and public spending: a panel data analysis

Author

Listed:
  • Maria Berrittella

    (Università degli Studi di Palermo)

Abstract

The aim of this paper is to investigate, empirically, what components of public spending imply a decreasing effect on organized crime and what components create opportunities for organized crime, discussing also the role of government efficiency. Using a panel data analysis, the results show a strikingly consistent pattern for the EU Member States. Organized crime mainly operates in the distribution of government spending for local public goods and public provision of private services. There is a decreasing effect on organized crime of the public expenditure devoted to education and social policy. Government efficiency in public spending is beneficial to limit the opportunities of the organized crime.

Suggested Citation

  • Maria Berrittella, 2018. "Organized crime and public spending: a panel data analysis," Economics of Governance, Springer, vol. 19(2), pages 119-140, May.
    • Handle: RePEc:spr:ecogov:v:19:y:2018:i:2:d:10.1007_s10101-018-0206-3
    DOI: 10.1007/s10101-018-0206-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10101-018-0206-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10101-018-0206-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gutmann, Jerg & Voigt, Stefan, 2018. "The rule of law: Measurement and deep roots," European Journal of Political Economy, Elsevier, vol. 54(C), pages 68-82.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    3. Kotera, Go & Okada, Keisuke, 2017. "How does democratization affect the composition of government expenditure?," Journal of Economic Behavior & Organization, Elsevier, vol. 137(C), pages 145-159.
    4. Barone, Guglielmo & Narciso, Gaia, 2015. "Organized crime and business subsidies: Where does the money go?," Journal of Urban Economics, Elsevier, vol. 86(C), pages 98-110.
    5. Kollias, Christos & Mylonidis, Nikolaos & Paleologou, Suzanna-Maria, 2013. "Crime and the effectiveness of public order spending in Greece: Policy implications of some persistent findings," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 121-133.
    6. Lance Lochner & Enrico Moretti, 2004. "The Effect of Education on Crime: Evidence from Prison Inmates, Arrests, and Self-Reports," American Economic Review, American Economic Association, vol. 94(1), pages 155-189, March.
    7. Oriana Bandiera, 2003. "Land Reform, the Market for Protection, and the Origins of the Sicilian Mafia: Theory and Evidence," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 19(1), pages 218-244, April.
    8. Dawson, Andrew, 2013. "The Social Determinants of the Rule of Law: A Comparison of Jamaica and Barbados," World Development, Elsevier, vol. 45(C), pages 314-324.
    9. Kai Konrad & Stergios Skaperdas, 2012. "The market for protection and the origin of the state," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 50(2), pages 417-443, June.
    10. Yoram Ben-Porath, 1967. "The Production of Human Capital and the Life Cycle of Earnings," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 352-352.
    11. Buonanno, Paolo & Montolio, Daniel, 2008. "Identifying the socio-economic and demographic determinants of crime across Spanish provinces," International Review of Law and Economics, Elsevier, vol. 28(2), pages 89-97, June.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maria Berrittella & Carmelo Provenzano, 2016. "An Empirical Analysis of the Public Spending Decomposition on Organized Crime," Working Papers 2016.01, Fondazione Eni Enrico Mattei.
    2. Berrittella, Maria & Provenzano, Carmelo, 2016. "An Empirical Analysis of the Public Spending Decomposition on Organized Crime," ET: Economic Theory 232005, Fondazione Eni Enrico Mattei (FEEM).
    3. Povilas Lastauskas & Eirini Tatsi, 2013. "Spatial Nexus in Crime and unemployment in Times of crisis: Evidence from Germany," Cambridge Working Papers in Economics 1359, Faculty of Economics, University of Cambridge.
    4. Buonanno, Paolo & Leonida, Leone, 2009. "Non-market effects of education on crime: Evidence from Italian regions," Economics of Education Review, Elsevier, vol. 28(1), pages 11-17, February.
    5. Marco Le Moglie & Giuseppe Sorrenti, 2022. "Revealing "Mafia Inc."? Financial Crisis, Organized Crime, and the Birth of New Enterprises," The Review of Economics and Statistics, MIT Press, vol. 104(1), pages 142-156, March.
    6. Cavalieri, Marina & Finocchiaro Castro, Massimo & Guccio, Calogero, 2023. "Organised crime and educational outcomes in Southern Italy: An empirical investigation," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    7. dos Santos, Marcelo Rodrigues, 2009. "Labor Supply, Criminal Behavior and Income Redistribution," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 29(2), December.
    8. Eugene Braslavskiy & Firmin Doko Tchatoka & Virginie Masson, 2019. "The Importance Of Punishment Substitutability In Criminometric Studies," Bulletin of Economic Research, Wiley Blackwell, vol. 71(3), pages 491-507, July.
    9. Iljoong Kim & Jaewook Byeon, 2017. "Discretionary prosecution of regulatory crimes: disproportionate emphasis and consequences to other serious crimes," Asia-Pacific Journal of Regional Science, Springer, vol. 1(2), pages 559-587, October.
    10. Lastauskas, Povilas & Tatsi, Eirini, 2017. "Spatial Nexus in Crime and Unemployment in Times of Crisis," Working Paper Series 2/2017, Stockholm University, Swedish Institute for Social Research.
    11. Ferrante, Livio & Reito, Francesco & Spagano, Salvatore & Torrisi, Gianpiero, 2021. "Shall we follow the money? Anti-mafia policies and electoral competition," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 1110-1130.
    12. Dutta, Nabamita & Jana, Dipparna & Kar, Saibal, 2020. "Does state-level per capita income affect juvenile delinquency? An empirical analysis for Indian states," Economic Modelling, Elsevier, vol. 87(C), pages 109-120.
    13. Kausik Chaudhuri & Payel Chowdhury & Kevin Reilly, 2013. "A New Perspective on Violent Crime Burden Index: Evidence from Indian Districts," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 110(2), pages 771-789, January.
    14. Pietro A. Bianchi & Antonio Marra & Donato Masciandaro & Nicola Pecchiari, 2017. "Is It Worth Having the Sopranos on Board? Corporate Governance Pollution and Organized Crime: The Case of Italy," BAFFI CAREFIN Working Papers 1759, BAFFI CAREFIN, Centre for Applied Research on International Markets Banking Finance and Regulation, Universita' Bocconi, Milano, Italy.
    15. Cerro, Ana María & Rodríguez Andrés, Antonio, 2011. "Typologies of Crime in the Argentine Provinces. A Panel Study 2000-2008," MPRA Paper 44460, University Library of Munich, Germany.
    16. Hazra, Devika & Aranzazu, Jose, 2022. "Crime, correction, education and welfare in the U.S. – What role does the government play?," Journal of Policy Modeling, Elsevier, vol. 44(2), pages 474-491.
    17. van Ours, Jan C. & Williams, Jenny & Ward, Shannon, 2015. "Bad Behavior: Delinquency, Arrest and Early School Leaving," CEPR Discussion Papers 10755, C.E.P.R. Discussion Papers.
    18. Galletta, Sergio, 2017. "Law enforcement, municipal budgets and spillover effects: Evidence from a quasi-experiment in Italy," Journal of Urban Economics, Elsevier, vol. 101(C), pages 90-105.
    19. Francesca Maria Calamunci & Federico Fabio Frattini, 2023. "When Crime Tears Communities Apart: Social Capital and Organised Crime," Working Papers 2023.08, Fondazione Eni Enrico Mattei.
    20. Giulio Fella & Giovanni Gallipoli, 2014. "Education and Crime over the Life Cycle," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 81(4), pages 1484-1517.

    More about this item

    Keywords

    Government efficiency; Organized crime; Panel data regression; Public expenditure;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ecogov:v:19:y:2018:i:2:d:10.1007_s10101-018-0206-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.