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The effect of tourism on crime in Italy: a dynamic panel approach

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  • B. Biagi

    ()

  • MG. Brandano

    ()

  • C. Detotto

    ()

Abstract

The purpose of this paper is to demonstrate that, for the case of Italy, ceteris paribus, tourist areas tend to have a greater amount of crime than non-tourist ones in the short and long run. Following the literature of the economics of crime à la Becker (Crime and Punishment - An Economic Approach, 1968) and Enrlich (Participation in Illegitimate Activities - A Theoretical and Empirical Investigation, 1973) and using a System GMM approach for the time span 1985–2003, the authors empirically test whether total crime in Italy is affected by the presence of tourists. Findings confirm the initial intuition of a positive relationship between tourism and crime in destinations. When using the level rather than the rate of total crime and controlling for the equivalent tourists (i.e. the number of tourists per day in a given destination) the effect of the tourist variable is confirmed. Overall results indicate however that the resident population has a greater effect on crime than the tourist population. Therefore, the main explanation for the impact of tourism on crime seems to be agglomeration effects.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201201.

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Date of creation: 2012
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Handle: RePEc:cns:cnscwp:201201

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Keywords: tourism; crime; externalities;

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References

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  1. R Blundell & Steven Bond, . "Initial conditions and moment restrictions in dynamic panel data model," Economics Papers, Economics Group, Nuffield College, University of Oxford W14&104., Economics Group, Nuffield College, University of Oxford.
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  12. B. Biagi & C. Detotto, 2010. "Crime as tourism externality," Working Paper CRENoS 201015, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  13. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, Elsevier, vol. 108(1), pages 1-24, May.
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Cited by:
  1. Daniel Montolio & Simón Planells, 2013. "Does tourism boost criminal activity? Evidence from a top touristic country," Working Papers, Institut d'Economia de Barcelona (IEB) 2013/4, Institut d'Economia de Barcelona (IEB).
  2. Brida, Juan Gabriel & Del Chiappa, Giacomo & Meleddu, Marta & Pulina, Manuela, 2012. "Cruise tourism exteralities and residents' support: A mixed approach," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, Kiel Institute for the World Economy, vol. 6(40), pages 1-26.

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