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

  • B. Biagi

    ()

  • MG. Brandano

    ()

  • C. Detotto

    ()

The purpose of this paper is to demonstrate that, for the case of Italy, ceteris paribus, tourist areas tend to have a greater amount of crime than non-tourist ones in the short and long run. Following the literature of the economics of crime à la Becker (Crime and Punishment - An Economic Approach, 1968) and Enrlich (Participation in Illegitimate Activities - A Theoretical and Empirical Investigation, 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 the presence of tourists. Findings confirm the initial intuition of a positive relationship between tourism and crime in destinations. When using the level rather than the rate of total crime and controlling for the equivalent tourists (i.e. the number of tourists per day in a given destination) the effect of the tourist variable is confirmed. Overall results indicate however that the resident population has a greater effect on crime than the tourist population. Therefore, the main explanation for the impact of tourism on crime seems to be agglomeration effects.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201201.

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Date of creation: 2012
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Handle: RePEc:cns:cnscwp:201201
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  1. Paolo Buonanno, 2005. "Crime and labour market opportunities in Italy (1993-2002)," Working Papers (-2012) 0504, University of Bergamo, Department of Economics.
  2. Bianca Biagi & Claudio Detotto, 2014. "Crime as Tourism Externality," Regional Studies, Taylor & Francis Journals, vol. 48(4), pages 693-709, April.
  3. Blundell, R. & Bond, S., 1995. "Initial Conditions and Moment Restrictions in Dynamic Panel Data Models," Economics Papers 104, Economics Group, Nuffield College, University of Oxford.
  4. H. Naci Mocan & Stephen C. Billups & Jody Overland, 2000. "A Dynamic Model of Differential Human Capital and Criminal Activity," NBER Working Papers 7584, National Bureau of Economic Research, Inc.
  5. Angela K. Dills & Jeffrey A. Miron & Garrett Summers, 2010. "What Do Economists Know about Crime?," NBER Chapters, in: The Economics of Crime: Lessons for and from Latin America, pages 269-302 National Bureau of Economic Research, Inc.
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  7. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
  8. 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.
  9. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-54, July.
  10. Zvi Griliches & Jerry A. Hausman, 1984. "Errors in Variables in Panel Data," NBER Technical Working Papers 0037, National Bureau of Economic Research, Inc.
  11. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Wiley Blackwell, vol. 58(2), pages 277-97, April.
  12. Julie Berry Cullen & Steven D. Levitt, 1996. "Crime, Urban Flight, and the Consequences for Cities," NBER Working Papers 5737, National Bureau of Economic Research, Inc.
  13. Edwin S. Mills & Luan Sende Lubuele, 1997. "Inner Cities," Journal of Economic Literature, American Economic Association, vol. 35(2), pages 727-756, June.
  14. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
  15. 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.
  16. Luciano Mauro & Gaetano Carmeci, 2007. "A Poverty Trap of Crime and Unemployment," Review of Development Economics, Wiley Blackwell, vol. 11(3), pages 450-462, 08.
  17. Nadia Campaniello, 2013. "Mega Events in Sports and Crime," Journal of Sports Economics, , vol. 14(2), pages 148-170, April.
  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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