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Mafia Firms and Aftermaths

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  • Alfano, Maria Rosaria
  • Cantabene, Claudia
  • Silipo, Damiano Bruno

Abstract

We use a unique and unexplored dataset to investigate the determinants and effects of mafia firms in Italy. Mafia may use several tools to expand its firms. However, in this paper, we show that they prefer political corruption to violence to expand mafia firms. In particular, they use the latter more to build up their reputation in new established regions. Mafia firms hamper entrepreneurial activity but they can have beneficial effects on unemployment if mafia firms add to not substitute current economic activities. Policy makers should take account of this twofold effects of mafia firms.

Suggested Citation

  • Alfano, Maria Rosaria & Cantabene, Claudia & Silipo, Damiano Bruno, 2019. "Mafia Firms and Aftermaths," EconStor Preprints 200255, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:200255
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    Cited by:

    1. Antonio Acconcia & Elisa Scarinzi, 2022. "The effects of local demand and supply restrictions on markup," Temi di discussione (Economic working papers) 1370, Bank of Italy, Economic Research and International Relations Area.

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    More about this item

    Keywords

    Organized crime; Mafia firm; Mafia and development;
    All these keywords.

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms

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