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Mafia Firms and Aftermaths

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  • Alfano, Maria Rosaria
  • Cantabene, Claudia
  • Silipo, Damiano Bruno

Abstract

We use a unique and unexplored dataset to investigate the determinants and effects of mafia firms in Italy. Mafia may use several tools to expand its firms. However, in this paper, we show that they prefer political corruption to violence to expand mafia firms. In particular, they use the latter more to build up their reputation in new established regions. Mafia firms hamper entrepreneurial activity but they can have beneficial effects on unemployment if mafia firms add to not substitute current economic activities. Policy makers should take account of this twofold effects of mafia firms.

Suggested Citation

  • Alfano, Maria Rosaria & Cantabene, Claudia & Silipo, Damiano Bruno, 2019. "Mafia Firms and Aftermaths," ETA: Economic Theory and Applications 294194, Fondazione Eni Enrico Mattei (FEEM).
  • Handle: RePEc:ags:feemth:294194
    DOI: 10.22004/ag.econ.294194
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    References listed on IDEAS

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    More about this item

    Keywords

    Research Methods/ Statistical Methods;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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