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Organized Crime and the Bright Side of Subversion of Law

Listed author(s):
  • Astrid, Gamba
  • Giovanni, Immordino
  • Salvatore, Piccolo

When Legislators award amnesties to `low-rank' criminals cooperating with the justice, top criminals may capture public officials to avoid being sanctioned. Optimal policies should anticipate this danger and fight it back by granting amnesties not only to low-rank criminals, but also to officials who plea guilty and report bribe givers. Even if the threat of being betrayed by their fellows may induce top-criminals to bribe prosecutors, these policies increase the conviction risk not only for top-criminals but also for low-rank ones, whereby increasing the risk premium that the latter require to participate the crime: the bright side of subversion of law.

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File URL: http://dems.unimib.it/repec/pdf/mibwpaper336.pdf
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Paper provided by University of Milano-Bicocca, Department of Economics in its series Working Papers with number 336.

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Length: 41
Date of creation: 17 May 2016
Date of revision: 17 May 2016
Handle: RePEc:mib:wpaper:336
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  8. Abbink, Klaus & Dasgupta, Utteeyo & Gangadharan, Lata & Jain, Tarun, 2014. "Letting the briber go free: An experiment on mitigating harassment bribes," Journal of Public Economics, Elsevier, vol. 111(C), pages 17-28.
  9. Fisman, Raymond & Svensson, Jakob, 2007. "Are corruption and taxation really harmful to growth? Firm level evidence," Journal of Development Economics, Elsevier, vol. 83(1), pages 63-75, May.
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  11. Alesina, Alberto & Piccolo, Salvatore & Pinotti, Paolo, 2016. "Organized Crime, Violence, and Politics," CEPR Discussion Papers 11641, C.E.P.R. Discussion Papers.
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