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Does more crime mean fewer jobs? An ARDL model

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Author Info
Claudio Detotto ()
Manuela Pulina ()

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Abstract

This paper analyses how a set of economic variables and a deterrence variable affect criminal activity. Furthermore, it highlights the extent to which crime is detrimental for the economic activity. The case study is Italy for the time span 1970 up to 2004. An Autoregressive Distributed Lags approach is employed to assess the cointegration status of the variables under investigation. A Granger causality test is also implemented to establish temporal interrelationships. The main finding is that all crime typologies, but homicides and fraud, have a crowding-out effect on legal economic activity, reducing the employment rate.

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Publisher Info
Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200905.

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Date of creation: 2009
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Handle: RePEc:cns:cnscwp:200905

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Related research
Keywords: Crime; deterrence; economic variables; crowding-out effect;

Find related papers by JEL classification:
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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This page was last updated on 2009-11-27.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.