ECONOMICS SEMINAR -Alessandro Flamini

Author: CASE
Time: 00:00
Location: CASE 127




Wednesday,22 March ,2017


Speaker  : Alessandro Flamini - University of Pavia

Title        : "Organized Crime and Technology"

Date        : 22 March  2017 -Wednesday

Time       : 16.00-17:30

Place      : CAS 127

Abstract: This paper investigates the relation between the presence of organized crime and the technology level in the northern Italian provinces. Theoretically, we adopt evolutionary game theory to explain the mechanics of this relation. Specifically, we show that if the presence of organized crime is sufficiently large, then natural selection favours the strategy of making business with organized crime rather than the strategy of  innovation. Empirically, we ground the identification strategy on the episode of forced exile to northern provinces for criminals belonging to clans, a natural experiment occurred in the 1960s-1990s. Our analysis propose two indexes at the province level. The first portrays technology at a fine-grained industrial sector level from a whole firms population standpoint. The second describes mafia-type organizations in line with the investigation approach currently used by Italian National Antimafia Directorate (DNA) and Antimafia District Directorate (DDA). It is therefore equipped to detect the new silent mafia intimidation method developed by organised crime outside the head office located in south Italy. By using these indexes, we provide empirical evidence that in northern Italy provinces, the larger the presence of organized crime, the less technological the industrial fabric.