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Crime and regional growth in Italy

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  • Lanzafame, Matteo

Abstract

Building on standard growth-theory models, this paper provides an empirical investigation of the effects of crime on regional economic performance in Italy, as measured by labour productivity growth. Our analysis relies on a panel of annual data on the Italian regions and, contrary to previous studies in the field, adopts a flexible and efficient panel estimation approach which controls for parameter heterogeneity, cross-section dependence and variable endogeneity via mean-group estimation, multifactor modelling and Granger-causality methods. Our results strongly support the hypothesis that crime has significant negative effects on regional growth in Italy.

Suggested Citation

  • Lanzafame, Matteo, 2013. "Crime and regional growth in Italy," MPRA Paper 44343, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:44343
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    References listed on IDEAS

    as
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    Cited by:

    1. Pawel Gajewski, 2014. "Sovereign spreads and financial market behavior before and during the crisis," Lodz Economics Working Papers 4/2014, University of Lodz, Faculty of Economics and Sociology.

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    More about this item

    Keywords

    Crime; regional growth; panel data; multifactor modeling.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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