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Property Crime and Law Enforcement in Italy. A Regional Panel Analysis 1980-95

  • Guido Travaglini

    (Università 'La Sapienza' Roma)

In this paper a Cobb-Douglas utility function is introduced and solved for a dynamic equation of property crime supply and its determinants, namely deterrents and income. Thereafter, all variables are empirically tested, by means of a simultaneous equations model, for the sign and magnitude of their mutual relationships in a panel of Italy and its two economically and culturally different areas, the North and the South. The period scrutinized is 1980-95 and the results obtained widely differ among the two. When appropriately modeled and instrumented, in fact, property crime is found to react to police and criminal justice deterrence, and also to incomes, with different parameter magnitudes and significance. The same diversity applies to the parameters related to deterrence, flawed in quite a few cases by scarce law enforcement and productivity, and to those related to local incomes, which still reflect for the South a tendency of crime to substitute for legal activities.

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File URL: http://econwpa.repec.org/eps/em/papers/0512/0512001.pdf
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Paper provided by EconWPA in its series Econometrics with number 0512001.

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Length: 31 pages
Date of creation: 01 Dec 2005
Date of revision:
Handle: RePEc:wpa:wuwpem:0512001
Note: Type of Document - pdf; pages: 31
Contact details of provider: Web page: http://econwpa.repec.org

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  12. Scorcu, Antonello E. & Cellini, Roberto, 1998. "Economic activity and crime in the long run: an empirical investigation on aggregate data from Italy, 1951-1994," International Review of Law and Economics, Elsevier, vol. 18(3), pages 279-292, September.
  13. Hausman, Jerry A. & Taylor, William E., 1981. "Panel data and unobservable individual effects," Journal of Econometrics, Elsevier, vol. 16(1), pages 155-155, May.
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