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Localised Effects of Re-allocated Real Estate Mafia Assets

Author

Listed:
  • Filippo Boeri

    (Centre for Economic Performance, London School of Economics; Department of Economics, ESSEC Business School)

  • Marco Di Cataldo

    (Department of Economics, Ca' Foscari University of Venice; Department of Geography and Environment, London School of Economics)

  • Elisabetta Pietrostefani

    (Department of Geography and Environment, London School of Economics; Bartlett Faculty of the Built Environment, University College London)

Abstract

In an effort to tackle organised crime, the Italian State implements a policy stipulating that properties confiscated to individuals convicted of mafia-related crimes are reallocated to a new use. The policy is meant to act as both an anti-mafia measure and a way to compensate local communities by converting real-estate assets into public amenities. We assess whether this scheme has an effect on the regeneration of local areas by assessing its impact on the value of properties in the vicinity of re-allocated assets and crime activity. The results unveil a positive effect of re-allocated real estate assets on house prices, driven by mafia strongholds, more deprived neighbourhoods, and areas with more inelastic housing supply. The findings suggest declining effects with distance from the re-allocation site, indicating that the policy impact is highly localised. Part of this effect appears due to a decrease in organised crime activity in the streets where re-allocations have taken place. These findings have implications for the effectiveness of policies aiming to improve the quality of neighbourhoods where mafia presence is more pronounced.

Suggested Citation

  • Filippo Boeri & Marco Di Cataldo & Elisabetta Pietrostefani, 2022. "Localised Effects of Re-allocated Real Estate Mafia Assets," Working Papers 2022:10, Department of Economics, University of Venice "Ca' Foscari".
    • Handle: RePEc:ven:wpaper:2022:10
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    More about this item

    Keywords

    Organised crime; confiscation; hedonic analysis; urban regeneration policy; Italy;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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