Accomplice-Witnesses, Organized Crime and Corruption: Theory and Evidence from Italy
AbstractSince 1991 the Italian Legislator grants amnesties, protection and even economic bene.ts to former mobsters cooperating with the justice. These incentives were intro- duced to break down omertà. What is the economic logic behind this policy? Did the program succeed? To address these issues we develop a model accounting for the main trade-o¤s involved in the introduction of accomplice-witnesses regulations. We argue that rewarding informants is sometimes necessary to .ght organized crime and show how the optimal amnesty varies with the e¤ectiveness of the protection program, the reliability of the informants.testimonies, the strength of external complicities, and the internal cohesion between criminal partners. The optimal policy sti.es crime, spurs prosecution and induce a negative relationship between the number of talkers and the conviction rate. The available evidence supports the model.s predictions.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 232.
Date of creation: 10 Jun 2009
Date of revision: 17 Oct 2009
Accomplice-witnesses; Criminal Organizations; Leniency; Whistle-Blower;
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dufwenberg, Martin & Spagnolo, Giancarlo, 2012.
"Legalizing Bribe Giving,"
CEPR Discussion Papers
9236, C.E.P.R. Discussion Papers.
- Martin Dufwenberg & Giancarlo Spagnolo, 2011. "Legalizing Bribes," EIEF Working Papers Series 1117, Einaudi Institute for Economics and Finance (EIEF), revised Dec 2011.
- Spagnolo, Giancarlo & Dufwenberg, Martin, 2011. "Legalizing Bribes," SITE Working Paper Series 13, Stockholm Institute of Transition Economics, Stockholm School of Economics, revised 06 Apr 2012.
- Paolo Pinotti, 2012.
"The Economic Costs of Organized Crime: Evidence from Southern Italy,"
054, "Carlo F. Dondena" Centre for Research on Social Dynamics (DONDENA), Università Commerciale Luigi Bocconi.
- Paolo Pinotti, 2012. "The economic costs of organized crime: evidence from southern Italy," Temi di discussione (Economic working papers) 868, Bank of Italy, Economic Research and International Relations Area.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Lia Ambrosio).
If references are entirely missing, you can add them using this form.