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

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  • Biagi, Bianca
  • Brandano, Maria Giovanna
  • Detotto, Claudio

Abstract

The purpose of this paper is to demonstrate that, all else being equal, for the case of Italy, tourist areas tend to have a greater amount of crime than non-tourist areas in the long run. Following the literature of the economics of crime à la Becker (1968) and Ehrlich (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 tourist arrivals. Findings confirm the initial intuition of a positive relationship between tourism and crime in destinations. When controlling for the difference between tourists and residents in the propensity to be victimized, no relevant differences are found: the likelihood to be victimized is quite similar for the two groups. As a consequence, agglomeration and urbanisation effects seem to be the main explanation for the impact of tourism on crime. One can image that overcrowded cities provide more opportunities to criminals to commit illegal activities regardless of the number of visitors and residents in destinations. --

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Bibliographic Info

Paper provided by Kiel Institute for the World Economy in its series Economics Discussion Papers with number 2012-4.

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Date of creation: 2012
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Handle: RePEc:zbw:ifwedp:20124

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Keywords: Tourism; crime; externalities;

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References

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  1. 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.
  2. Claudio Detotto & Edoardo Otranto, 2010. "Does Crime Affect Economic Growth?," Kyklos, Wiley Blackwell, vol. 63(3), pages 330-345, 08.
  3. Marselli, Riccardo & Vannini, Marco, 1997. "Estimating a crime equation in the presence of organized crime: Evidence from Italy," International Review of Law and Economics, Elsevier, vol. 17(1), pages 89-113, March.
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  8. Julie Berry Cullen & Steven D. Levitt, 1999. "Crime, Urban Flight, And The Consequences For Cities," The Review of Economics and Statistics, MIT Press, vol. 81(2), pages 159-169, May.
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  13. Ehrlich, Isaac, 1973. "Participation in Illegitimate Activities: A Theoretical and Empirical Investigation," Journal of Political Economy, University of Chicago Press, vol. 81(3), pages 521-65, May-June.
  14. Nadia Campaniello, 2013. "Mega Events in Sports and Crime," Journal of Sports Economics, , vol. 14(2), pages 148-170, April.
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  17. Paolo Buonanno, 2006. "Crime and Labour Market Opportunities in Italy (1993-2002)," LABOUR, CEIS, vol. 20(4), pages 601-624, December.
  18. Claudio Detotto & Pulina Manuela, 2010. "Testing the effects of crime on the Italian economy," Economics Bulletin, AccessEcon, vol. 30(3), pages 2063-2074.
  19. Fajnzylber, Pablo & Lederman, Daniel & Loayza, Norman, 2002. "Inequality and Violent Crime," Journal of Law and Economics, University of Chicago Press, vol. 45(1), pages 1-40, April.
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Cited by:
  1. 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, vol. 6(40), pages 1-26.
  2. Daniel Montolio & Simón Planells, 2013. "Does tourism boost criminal activity? Evidence from a top touristic country," Working Papers 2013/4, Institut d'Economia de Barcelona (IEB).

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