nep-iue New Economics Papers
on Informal and Underground Economics
Issue of 2012‒03‒08
two papers chosen by
Catalina Granda Carvajal
Universidad de Antioquia

  1. Los efectos macroeconómicos del lavado de dinero By Slim, Sadri
  2. On the historical and geographic origins of the Sicilian mafia By Buonanno, Paolo; Durante, Ruben; Prarolo, Giovanni; Vanin, Paolo

  1. By: Slim, Sadri
    Abstract: The purpose of this research is to study the presence of illegal economy and money laundering processes from a macroeconomic perspective to analyze their economic effects and propose a conceptual framework that identifies its impact in terms of the mechanisms identified. Thus, considering the FATF typology, we analyze the real and monetary effects of each mechanism outlined, differentiating the effects on closed economy generated by elementary and washing circuits of organized crime, from the effects of money laundering in open economy relevant mechanisms of transnational crime.
    Keywords: Money laundering; illegal economy;
    JEL: O17 E26 K42 E4
    Date: 2011
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:37031&r=iue
  2. By: Buonanno, Paolo; Durante, Ruben; Prarolo, Giovanni; Vanin, Paolo
    Abstract: This research attempts to explain the large differences in the early diffusion of the mafia across different areas of Sicily. We advance the hypothesis that, after the demise of Sicilian feudalism, the lack of publicly provided property-right protection from widespread banditry favored the development of a florid market for private protection and the emergence of a cartel of protection providers: the mafia. This would especially be the case in those areas (prevalently concentrated in the Western part of the island) characterized by the production and commercialization of sulphur and citrus fruits, Sicily's most valuable export goods whose international demand was soaring at the time. We test this hypothesis combining data on the early incidence of mafia across Sicilian municipalities and on the distribution of sulphur reserves, land suitability for the cultivation of citrus fruits, distance from the main commercial ports, and a variety of other geographical controls. Our empirical findings provide support for the proposed hypothesis documenting, in particular, a significant impact of sulphur extraction, terrain ruggedness, and distance from Palermo's port on mafia's early diffusion.
    Keywords: Organized crime; Mafia; Private protection; Persistence; Trade shocks; Sulfur; Citrus fruits
    JEL: F10 N93 O13 K42
    Date: 2011–05–01
    URL: http://d.repec.org/n?u=RePEc:pra:mprapa:37009&r=iue

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