Tax Evasion and Economic Crime. Empirical Evidence for Italy

37 Pages Posted: 5 Oct 2015

See all articles by Amedeo Argentiero

Amedeo Argentiero

University of Rome Tor Vergata, Department of Economics; Institute for Studies and Economic Analyses (ISAE)

Bruno Chiarini

University of Naples, Parthenope

Elisabetta Marzano

University of Naples Parthenope - Department of Economic Studies (DES)

Date Written: September 21, 2015

Abstract

This paper examines the impact of tax evasion on criminal activities in Italy. Precisely, we consider three types of crime particularly related to economic determinants: property crimes (including robberies, thefts and car thefts), frauds and usury. By using annual data for the Italian provinces (NUTS-3) over the period 2006 to 2010 to estimate a dynamic panel, we show that tax evasion substitutes both, frauds and usury, whereas crimes against the property are positively affected by tax evasion. Interestingly, the degree of substitution for fraud and usury is related to the size of tax burden. Moreover, the estimates indicate that these crimes show a different persistency over time, reflecting different adjustment costs. Finally, we find statistical significance and the expected sign for deterrence only for property crimes whereas frauds and usury are not influenced by any deterrence or clearing-up variable.

Keywords: property crime, usury, frauds, tax evasion, deterrence effect

JEL Classification: C330, K340, K420

Suggested Citation

Argentiero, Amedeo and Chiarini, Bruno and Marzano, Elisabetta, Tax Evasion and Economic Crime. Empirical Evidence for Italy (September 21, 2015). CESifo Working Paper Series No. 5497, Available at SSRN: https://ssrn.com/abstract=2669363

Amedeo Argentiero

University of Rome Tor Vergata, Department of Economics ( email )

Rome, I-00133
Italy

HOME PAGE: http://www.amedeoargentiero.com

Institute for Studies and Economic Analyses (ISAE) ( email )

Piazza dell' Indipendenza 4
I-00185
Italy

HOME PAGE: http://www.amedeoargentiero.com

Bruno Chiarini (Contact Author)

University of Naples, Parthenope ( email )

Via Generale Parisi 13
Napoli, 80133
Italy

Elisabetta Marzano

University of Naples Parthenope - Department of Economic Studies (DES) ( email )

via Medina 40
Naples, 80133
Italy

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