We analyse how oganized crime affects the economy through its impact on the effective demand, following a Neo-Kaleckian approach. From this perspective, the presence of organized crime, on the one hand, reduces the effective demand draining resources through extortion, bribery of public officials and encouraging consumption of criminal goods; on the other hand, it increases the effective demand using the proceeds of criminal activity in the purchase of legal consumption and investment goods. The model highlights the opposing action of these forces, identifying the conditions for a negative impact on the degree of capacity utilization and the growth rate.

Criminalità organizzata e domanda aggregata: un’analisi macroeconomica

CAPUANO, CARLO;PURIFICATO, FRANCESCO
2015

Abstract

We analyse how oganized crime affects the economy through its impact on the effective demand, following a Neo-Kaleckian approach. From this perspective, the presence of organized crime, on the one hand, reduces the effective demand draining resources through extortion, bribery of public officials and encouraging consumption of criminal goods; on the other hand, it increases the effective demand using the proceeds of criminal activity in the purchase of legal consumption and investment goods. The model highlights the opposing action of these forces, identifying the conditions for a negative impact on the degree of capacity utilization and the growth rate.
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Utilizza questo identificativo per citare o creare un link a questo documento: http://hdl.handle.net/11588/624831
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