Does Tax Evasion Affect Economic Crime?

39 Pages Posted: 25 May 2018

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: April 09, 2018

Abstract

This paper examines the impact of tax evasion on criminal activities in Italy. Specifically, we consider three types of crime that are related to economic determinants: property crimes (including robbery, theft and car theft), fraud and usury. We estimate a dynamic panel using annual data from the Italian provinces (NUTS-3) for the 2006-2010 period and show that tax evasion positively affects economic crimes. Notably, the elasticity of tax evasion to fraud is related to the size of the tax burden; in addition, these crimes demonstrate different levels of persistence over time, reflecting different adjustment costs. Finally, we find that property crimes, fraud and usury are not influenced by deterrence or clearing-up variables.

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

JEL Classification: C330, H260, K420

Suggested Citation

Argentiero, Amedeo and Chiarini, Bruno and Marzano, Elisabetta, Does Tax Evasion Affect Economic Crime? (April 09, 2018). CESifo Working Paper Series No. 6957, Available at SSRN: https://ssrn.com/abstract=3180503

Amedeo Argentiero (Contact Author)

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

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

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
44
Abstract Views
375
PlumX Metrics