Allis not lost: Organized crime and social capital formation☆

• 成果类型: Article
• 署名作者: Buonanno, Paolo; Ferrari, Irene; Saia, Alessandro
• 署名单位: University of Bergamo; Marche Polytechnic University; Tilburg University; University of Bologna
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2024.105257
• 发表日期: 2024
• 关键词: Organized crime; Social capital; Italy; 5 per Mille

摘要

We investigate how institutional quality influences social capital by exploiting a policy designed to fight organized crime in Italy: the dismissal of city councils following criminal infiltration into local governments. To measure social capital, we employ a novel, fine-grained indicator based on Italy's 5 per Mille provision, which allows taxpayers to allocate a portion of their income tax to non-profit organizations. Using a difference-indifferences strategy, we find that city council dismissals lead to a significant increase in social capital. We document that the perceived strengthening of law enforcement is the primary mechanism through which city council dismissals enhance social capital.