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Mafias as Enforcers

Author

Listed:
  • James E. Anderson

    (Boston College)

  • Oriana Bandiera

    (London School of Economics)

Abstract

Historical evidence suggests that Mafias originally formed to provide enforcement of legitimate property rights when state enforcement was weak. We provide a general equilibrium model of Mafias as enforcement coalitions which protect property from predators. Both the level of predation and the type of enforcement ≥ self-enforcement, specialized competitive enforcement and Mafia enforcement ≥ are endogenous. We identify the conditions under which a coalition emerges and persists and show that Mafias are most likely to be found at intermediate stages of economic development. We also show that Mafias might provide better enforcement to the rich than would a welfare-maximizing state, suggesting a difficulty in the emergence and persistence of state provision of enforcement.

Suggested Citation

  • James E. Anderson & Oriana Bandiera, 2000. "Mafias as Enforcers," Boston College Working Papers in Economics 480, Boston College Department of Economics.
  • Handle: RePEc:boc:bocoec:480
    Note: published as "Private Enforcement and Social Efficiency"
    as

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    File URL: http://fmwww.bc.edu/EC-P/wp480.pdf
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    References listed on IDEAS

    as
    1. Skaperdas, S. & Syropoulos, C., 1993. "Gangs as Primitive States," Papers 92-93-02, California Irvine - School of Social Sciences.
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    Cited by:

    1. Avinash Dixit, 2003. "On Modes of Economic Governance," Econometrica, Econometric Society, vol. 71(2), pages 449-481, March.
    2. Raul Caruso, 2009. "Spesa pubblica e criminalità organizzata in Italia: evidenza empirica su dati Panel nel periodo 1997-2003," Economia & lavoro, Carocci editore, issue 1, pages 1-73.
    3. Nicolas Jacquemet, 2005. "La corruption comme une imbrication de contrats : Une revue de la littérature microéconomique," Working Papers 2005-29, Center for Research in Economics and Statistics.
    4. Marianna Belloc, 2006. "Institutions and International Trade: A Reconsideration of Comparative Advantage," Journal of Economic Surveys, Wiley Blackwell, vol. 20(1), pages 3-26, February.
    5. Iain W. Long, 2017. "The Storm Before the Calm? Adverse Effects of Tackling Organized Crime," Manchester School, University of Manchester, vol. 85(5), pages 541-576, September.

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    More about this item

    Keywords

    mafias; private enforcement;

    JEL classification:

    • K0 - Law and Economics - - General
    • H1 - Public Economics - - Structure and Scope of Government

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