We study the investment of organized crime in the legal economy. By using the shock induced on the Italian credit market by the 2007 subprime mortgage crisis, we document how provinces with a high organized crime presence have been impacted less by the crisis in terms of the establishment of new enterprises than provinces with a lower criminal infiltration. We provide evidence that the lower impact of the crisis is consistent with the presence of investments by organized crime in the legal economy. We corroborate this interpretation by comparing our results with the characterization made by the judicial authority of such investments.

Le Moglie, M., Sorrenti, G., Revealing “Mafia Inc.”? Financial crisis, organized crime, and the birth of new enterprises, <<THE REVIEW OF ECONOMICS AND STATISTICS>>, 2022; (104/1): 142-156. [doi:10.1162/rest_a_00942] [http://hdl.handle.net/10807/177866]

Revealing “Mafia Inc.”? Financial crisis, organized crime, and the birth of new enterprises

Le Moglie, Marco;
2021

Abstract

We study the investment of organized crime in the legal economy. By using the shock induced on the Italian credit market by the 2007 subprime mortgage crisis, we document how provinces with a high organized crime presence have been impacted less by the crisis in terms of the establishment of new enterprises than provinces with a lower criminal infiltration. We provide evidence that the lower impact of the crisis is consistent with the presence of investments by organized crime in the legal economy. We corroborate this interpretation by comparing our results with the characterization made by the judicial authority of such investments.
2021
Inglese
Le Moglie, M., Sorrenti, G., Revealing “Mafia Inc.”? Financial crisis, organized crime, and the birth of new enterprises, <<THE REVIEW OF ECONOMICS AND STATISTICS>>, 2022; (104/1): 142-156. [doi:10.1162/rest_a_00942] [http://hdl.handle.net/10807/177866]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/177866
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