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on Law and Economics |
| By: | Daria Denti (Gran Sasso Science Institute); Marco Di Cataldo (Ca’ Foscari University of Venice) |
| Abstract: | Efficient justice is regarded as crucial for deterring crimes. This paper assesses the impact of a reform of the criminal justice system advocated by European institutions and implemented in Italy, significantly reshaping the geography of first-instance courts in the country through court mergers. We evaluate the reform's effects on justice efficiency and crime rates. Event study and difference-in-differences estimates reveal that the efficiency of criminal courts improved significantly as a result of the reform. This contributed to limiting property and organised crimes, while violent crimes were unaffected. These results support the idea that the deterrence effect of justice efficiency applies mainly to 'rational' crimes, while criminals acting under impulsive and less rational circumstances do not internalise information about justice in their decision-making. |
| Keywords: | crime, judicial reform, court mergers, justice efficiency, Italy |
| JEL: | K14 K42 P43 Z18 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ven:wpaper:2026:06 |
| By: | Janine Boshoff; Stephen Machin; Matteo Sandi |
| Abstract: | Reducing crime starts with both school attendance and conflict resolution |
| Keywords: | Crime, Schools |
| Date: | 2026–02–20 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepcnp:726 |
| By: | Bocchino, Andrea (Dept. of Economics, Norwegian School of Economics and Business Administration); Povea, Erika (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | This paper studies how organized crime presence transforms local communities and human capital formation. Identifying these effects is challenging, as crime is endogenous to local conditions. We address this by leveraging the recent case of Ecuador, where criminal organizations from neighboring countries have rapidly established a new cocaine export route. This externally driven shock generated sharp increases in violent crime, allowing us to estimate causal effects using a difference-in-differences design based on proximity to areas prone to cocaine smuggling. Crime-affected areas experienced higher dropout rates among children at grades characterized by weak school attachment, the end of primary education and the first years of secondary school. While we do not find evidence of increased dropout among older students aged 15-18, individuals in this age group already out of education at the time of the crime surge exhibited a marked rise in risky behaviors, reflected in higher homicide victimization and earlier pregnancies. We also document severe economic disruption: household income fell by nearly 30%, driven mainly by a decline in informal employment. Declining earnings are a key mechanism linking crime exposure to school dropout. These findings show that the externalities of organized crime impose persistent social costs, deepening inequality and undermining human capital development. |
| Keywords: | education; children; human capital; organized crime; labor markets |
| JEL: | I25 J24 K42 O15 |
| Date: | 2026–02–23 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2026_002 |
| By: | Howard Bodenhorn |
| Abstract: | The positive correlation between high temperatures and crime is well established. I consider how random, within-month daily high temperature and precipitation affects arrests rather than incidents. I analyze jail records of a Prohibition Era southern city with mean summer daily high temperatures of 85�F without modern air conditioning, so outdoor temperatures are salient. I find that each 1�F increase in daily high temperatures leads to a 0.5% to 1.9% increase in all-offense arrests, with the largest effect on violence. I also find that severe droughts have no meaningful effect on violent or public order offenses but lead to a 17.2% increase in the daily number of arrests for fraud, forgery, and related offenses. The results are consistent with a hypothesis that more arrests occur on hot days because more crimes are committed on hot days. The results are also consistent with studies that identify a connection between droughts and crime in modern developing countries. |
| JEL: | K42 N41 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34867 |
| By: | Leander Andres; Stefan Bauernschuster; Gordon B. Dahl; Helmut Rainer; Simone Schüller |
| Abstract: | This paper studies the impact of birthright citizenship on youth crime. We leverage a reform which automatically granted birthright citizenship to eligible immigrant children born in Germany after January 1, 2000 and administrative crime data from three federal states. Immigrant youth who acquired citizenship at birth are substantially less likely to engage in criminal activity, with estimates indicating a 70% reduction. These results are particularly relevant in light of ongoing debates in the U.S. about abolishing birthright citizenship. Our findings suggest that inclusive citizenship policies can reduce crime and its associated costs, which in turn could strengthen social cohesion. |
| Keywords: | birthright citizenship, crime, immigration, integration |
| JEL: | D04 J15 K37 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12397 |
| By: | Carrión M., Fernando; Macaroff, Anahí; Niño, Catalina; Oviedo, Enrique; Rico, María Alejandra |
| Abstract: | This document summarizes the topics addressed at the first seminar on the impact of organized crime on the economy of Latin America and the Caribbean, held jointly by the Economic Commission for Latin America and the Caribbean (ECLAC), the Friedrich Ebert Foundation (FEF) and the United Nations Office on Drugs and Crime (UNODC) on 23 and 25 September 2025 at ECLAC headquarters in Santiago. The aim is for the outcomes of that multidisciplinary dialogue analysing the impact of organized crime on economic dynamics in Latin America and the Caribbean to be translated into inputs for the formulation of empirically based and comprehensive public policies. These policies would create linkages between economic instruments and other institutional, security, intelligence and technological instruments coordinated at the local, national, regional and global levels, and go beyond an approach based exclusively on criminal justice or security to address organized crime, whose activities extend beyond borders. |
| Date: | 2026–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:85911 |
| By: | Matthew Maury; Michael Suher; Jeffery Y. Zhang |
| Abstract: | Does fair lending litigation impact mortgage lender decisions? Using a novel dataset of all fair lending legal actions from 1991 to 2023, we find that it does. In the wake of legal settlements for discrimination against Black borrowers, lenders significantly reduced denial rates for Black applicants. The reductions offset pre-litigation racial disparities in denial rates by litigated banks, relative to those banks' competitors. Origination rates for Black applicants also increased post-litigation. We further observe evidence of a spillover effect on the approval decisions of non-litigated banks operating in the same city as a litigated bank. Altogether, the evidence suggests that the enforcement of fair lending laws is an effective tool to reduce racial discrimination in credit markets. |
| Keywords: | Fair lending; Mortgages; Discrimination; Consumer lending |
| Date: | 2026–02–27 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:102842 |
| By: | Steven Shavell |
| Abstract: | Although the obvious effect of settlement is to save litigants the costs of trial, settlement also influences deterrence—and for two reasons. First, because settlement is agreed upon by plaintiffs, it raises their expected return from litigation and thus the probability of suit. This augments deterrence. Second, because settlement is agreed upon by defendants, it lowers their expected costs of litigation and therefore dilutes deterrence. The primary objective of the article is to identify the net effect of settlement on deterrence and on social welfare in a model of accidents, liability, and litigation. The conditions for the bringing of suit in the model are not only that plaintiffs be willing to go to trial, but also that their anticipated settlements would exceed their pretrial costs. |
| JEL: | K13 K4 K40 K41 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34878 |
| By: | Arnab Basu (Charles H. Dyson School of Applied Economics and Management, Cornell University); Tsenguunjav Byambasuren (Department of Economics, Trinity College Dublin); Nancy Chau (Charles H. Dyson School of Applied Economics and Management, Cornell University) |
| Abstract: | We trace the impact of a temporary ban targeting liquor‐serving bars – from launch to reversal – on alcohol consumption and women's experience with domestic violence in Kerala, India. Decomposing the policy‐induced and reversal effects by employing difference‐in‐differences and event‐study approaches, we identify a significant reduction in alcohol consumption (but only in bars) with an accompanying reduction in intimate partner violence during the policy period. However, both alcohol consumption and domestic violence rebounded to pre‐ban levels after the policy removal. Heterogeneity analysis further reveals these effects to be confined only amongst high‐wealth households. A battery of robustness tests confirms our findings. |
| Keywords: | Alcohol drinking; Domestic violence; Prohibition; Kerala; India |
| JEL: | D04 D12 J16 K42 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:tcd:tcduee:tep0326 |
| By: | Stephen B. Billings; Mark Hoekstra; Gabriel Pons Rotger |
| Abstract: | While a growing literature has documented the effect of neighborhoods on children, there is little evidence on how neighborhoods impact adults. This study examines the impact of neighborhoods on high-needs families in Denmark who are quasi-randomly assigned to social housing in different neighborhoods. Results indicate a one standard deviation improvement in nearby neighborhood quality causes a 0.08 standard deviation improvement in labor market outcomes, and a 2.8 percent reduction in the likelihood of criminal conviction. Additional results indicate the labor market effects are most consistent with additional job referrals from nearby neighbors, rather than differences in local job availability. |
| JEL: | I38 K42 R23 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34872 |
| By: | Fliers, Philip; Maphosa, Lloyd Melusi; Turner, John D. |
| Abstract: | In this paper, we examine the transplantation of British company law into the Cape Colony in the late nineteenth century. The Cape Colony Companies Act of 1892 was like its British counterpart in that it provided minimal investor protection. This meant that promoters were free to choose the level and types of shareholder safeguards in their company's articles of association. We analyse the shareholder protection offered in the articles of Cape Colony companies established in the decade after 1892. We find that Cape companies offered higher protection than British ones. They were also much more likely to adopt the gold-standard blueprint articles of association from the Act's appendix. We find that companies adopting these blueprint articles had more diffuse ownership but lower survival rates, suggesting trade-offs between investor protection and corporate longevity in the Cape Colony. |
| Keywords: | company law, legal transplant, investor protection, corporate governance, Africa, Cape Colony |
| JEL: | G32 G34 K22 N27 N47 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:qucehw:337473 |
| By: | Di Tommaso, Maria Laura (University of Turin); Mendolia, Silvia (University of Turin); Palmaccio, Silvia (Bocconi University); Savio, Giulia (University of Turin) |
| Abstract: | A comprehensive understanding of the determinants of sexual violence constitutes a crucial step toward effective prevention. While there is much research on the role of socio-economic circumstances of both victims acund perpetrators, little is known about whether an individual’s physical attractiveness influences the likelihood of perpetrating sexual violence. Using U.S. data from the National Longitudinal Study of Adolescent to Adult Health (Add Health), we examine the relationship between attractiveness and sexual violence perpetration against one’s partner. Physical attractiveness is measured using interviewer-assigned scores for respondents aged 12 to 17. While no correlation is documented for women, among men, a one-point increase in attractiveness (on a 1–5 scale) reduces the likelihood of perpetrating sexual violence in adulthood by 13 percent. We also find that contextual factors, such as parental education and neighborhood cohesion, mitigate this association. |
| Keywords: | sexual intimate partner violence, attractiveness, beauty premium |
| JEL: | J12 K42 J71 I12 J16 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18370 |
| By: | Hastings, Catherine; Cotterell, Art; Bruce, Farzana |
| Abstract: | In Australia, governments fund Community Legal Centres (CLCs) as part of the legal assistance sector (LAS) to meet the ‘legal needs’ of people experiencing disadvantage who cannot afford private legal services. Persistent unmet demand for CLCs is well-documented. To increase access to justice, the sector has been a long-time adopter of once-revolutionary innovations, like video conferencing. As artificial intelligence (AI) is increasingly used in private legal practice to increase productivity and profits, some parts of the LAS are also exploring AI use cases. This article asks: What do we know about CLC clients and how services are currently delivered to meet their needs? What must we consider about client capabilities to ensure AI technologies are appropriate in the context of CLC service delivery? The research includes a review of policy documents, peer-reviewed research and grey literature, and secondary analysis of empirical data on how client capabilities contribute to the legal needs of CLC clients. We show in the article that the three-dimensional nature of legal need, a client’s capability and ability to self-assist, structural inequalities and current CLC service delivery models are vital considerations when developing AI tools to increase access to justice. |
| Date: | 2026–02–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:p59yh_v1 |
| By: | Leogrande, Angelo; Arnone, Massimo; Drago, Carlo; Costantiello, Alberto; Anobile, Fabio |
| Abstract: | The paper aims to investigate the determinants of the Perceived Risk of Crime (PRC) in Italian regions for the period 2004-2022, with data provided by the ISTAT-BES framework. The analysis relies on a regional panel dataset, which is somewhat unbalanced, with an extensive set of socio-institutional, crime, and subjective well-being variables, such as social participation, trust in people, trust in the judiciary, pickpocketing, fear of crime, life satisfaction, pessimism about the future, and dissatisfaction with the regional landscape. The analysis combines classical panel data methodologies with machine learning techniques to check the robustness of the results and to detect regional latent patterns. In all models, namely, fixed effects, random effects, dynamic panel, and weighted least squares, it is confirmed that objective crime variables, as well as subjective ones, play a crucial role in determining PRC. In particular, it is confirmed that, among the variables, pickpocketing and fear of crime are the most important positive determinants of PRC, while trust in people and trust in the judiciary have a significant mitigating effect on PRC. Variables concerning pessimism about the future and environmental dissatisfaction are also confirmed to have a positive effect on PRC. Among several machine learning alternatives, the regularized linear regression model is selected as the best-performing predictive model, which provides an interpretable and accurate representation of the relationships between the variables. In addition, model-based clustering allows us to detect different regional profiles characterized by different combinations of crime, trust, well-being, and security perceptions. In conclusion, the results confirm that PRC in Italian regions depends on the complex interaction between actual crime, emotional reactions, trust, and quality of life, suggesting that effective policies to address PRC should be based on the integrated action of crime control strategies, trust-building, social cohesion, and quality of the regional landscape. |
| Date: | 2026–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:rd2sv_v1 |