CRIME AND FISCAL POLICY IN EUROPE: THE EFFECT OF SHADOW ECONOMY
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We empirically investigate the role of fiscal policies on criminal activity using a sample of 25 EU countries over the period 2000–2013. Our analysis indicates that tight fiscal policies appear to have a positive effect on crime. This effect becomes stronger when property (non-violent) crime rates are considered. Further, the presence of high levels of shadow economy in a country provides a very strong mitigating factor on the adverse effect of public policies on crime. The initially strong link between tight fiscal policy and non-violent crime weakens significantly in the presence of undocumented economic activities which compensate for the lack of formal economic opportunities.
2019 ◽
Vol 8
(1)
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pp. 51
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2016 ◽
Vol 14
(4)
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pp. 893-916
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2020 ◽
Vol 22
(3)
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pp. 357-381
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2015 ◽
Vol 6
(1)
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pp. 56-71
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