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Localised effects of re-allocated real estate mafia assets

Boeri, Filippo, Di Cataldo, Marco and Pietrostefani, Elisabetta (2022) Localised effects of re-allocated real estate mafia assets. Geography and Environment Discussion Paper Series (35). Department of Geography and Environment, LSE, London, UK.

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Abstract

In an effort to tackle organised crime, the Italian State implements a policy stipulating that properties confiscated to individuals convicted of mafia-related crimes are reallocated to a new use. The policy is meant to act as both an anti-mafia measure and a way to compensate local communities by converting real-estate assets into public amenities. We assess whether this scheme has an effect on the regeneration of local areas by assessing its impact on the value of properties in the vicinity of re-allocated assets and crime activity. The results unveil a positive effect of re-allocated real estate assets on house prices, driven by mafia strongholds, more deprived neighbourhoods, and areas with more inelastic housing supply. The findings suggest declining effects with distance from the re-allocation site, indicating that the policy impact is highly localised. Part of this effect appears due to a decrease in organised crime activity in the streets where re-allocations have taken place. These findings have implications for the effectiveness of policies aiming to improve the quality of neighbourhoods where mafia presence is more pronounced.

Item Type: Monograph (Discussion Paper)
Official URL: http://www.lse.ac.uk/geography-and-environment/res...
Additional Information: © 2022 The Authors
Divisions: Management
Geography & Environment
Subjects: H Social Sciences > HV Social pathology. Social and public welfare. Criminology
H Social Sciences > HD Industries. Land use. Labor
H Social Sciences > HT Communities. Classes. Races
JEL classification: K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law
R - Urban, Rural, and Regional Economics > R3 - Production Analysis and Firm Location > R32 - Other Production and Pricing Analysis
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Date Deposited: 27 Sep 2022 08:57
Last Modified: 27 Sep 2022 08:57
URI: http://eprints.lse.ac.uk/id/eprint/116682

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