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Organised crime and the economy: a framework for policy prescriptions

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  • Andrea Mario Lavezzi

Abstract

In this paper, we discuss policies to combat organised crime from the perspective of economic analysis. We introduce concepts such as supply and demand for Mafia and the implied notion of equilibrium to build a framework to classify the contexts in which organised crime interferes with economy. We then use this framework to discuss policy interventions, distinguishing between policies implemented by the State and mobilisation of civil society. We show that using the economic approach helps understand the aspect of persistence of criminal organisations and identify vicious circles of different nature. The broad spectrum of State policies identified includes norms on competition, on the efficiency of the State, on decriminalisation and on market deregulation. Finally, in discussing the mobilisation of civil society, we highlight the problem of coordination, an aspect often overlooked in the literature.

Suggested Citation

  • Andrea Mario Lavezzi, 2014. "Organised crime and the economy: a framework for policy prescriptions," Global Crime, Taylor & Francis Journals, vol. 15(1-2), pages 164-190, April.
  • Handle: RePEc:taf:fglcxx:v:15:y:2014:i:1-2:p:164-190
    DOI: 10.1080/17440572.2013.868626
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    References listed on IDEAS

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    1. Emilia Bonaccorsi di Patti, 2009. "Weak institutions and credit availability: the impact of crime on bank loans," Questioni di Economia e Finanza (Occasional Papers) 52, Bank of Italy, Economic Research and International Relations Area.
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    Cited by:

    1. Francesco Calderoni & Tommaso Comunale & Gian Maria Campedelli & Martina Marchesi & Deborah Manzi & Niccolò Frualdo, 2022. "Organized crime groups: A systematic review of individual‐level risk factors related to recruitment," Campbell Systematic Reviews, John Wiley & Sons, vol. 18(1), March.
    2. Marco Dugato & Francesco Calderoni & Gian Maria Campedelli, 2020. "Measuring Organised Crime Presence at the Municipal Level," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(1), pages 237-261, January.
    3. Francesca Calamunci & Francesco Drago, 2020. "The Economic Impact of Organized Crime Infiltration in the Legal Economy: Evidence from the Judicial Administration of Organized Crime Firms," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(2), pages 275-297, July.
    4. Michele Battisti & Andrea Mario Lavezzi & Lucio Masserini & Monica Pratesi, 2018. "Resisting the extortion racket: an empirical analysis," European Journal of Law and Economics, Springer, vol. 46(1), pages 1-37, August.
    5. Tamara Fioroni & Andrea Mario Lavezzi & Giovanni Trovato, 2023. "Organized Crime, Corruption and Economic Growth," Discussion Papers 2023/298, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    6. Alexander Funcke & Ulrik Franke, 2016. "Partial participation towards collective action: To stifle or instigate," Rationality and Society, , vol. 28(4), pages 453-467, November.
    7. Giuseppe Scandurra & Alfonso Carfora & Antonio Thomas, 2024. "Does Crime Influence Investment in Renewable Energy Sources? Empirical Evidence from Italy," Energies, MDPI, vol. 17(14), pages 1-19, July.
    8. Michele Battisti & Andrea Mario Lavezzi & Roberto Musotto, 2022. "Organizing Crime: an Empirical Analysis of the Sicilian Mafia," Papers 2205.02310, arXiv.org.
    9. Michele Battisti & Giovanni Bernardo & Andrea Mario Lavezzi & Giuseppe Maggio, 2019. "Shooting down the price: evidence from mafia homicides and housing market volatility," Working Paper series 19-05, Rimini Centre for Economic Analysis.

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