Localized effects of confiscated and re-allocated real estate mafia assets

Boeri, Filippo ORCID: 0000-0001-8249-104X, Di Cataldo, Marco and Pietrostefani, Elisabetta (2024) Localized effects of confiscated and re-allocated real estate mafia assets. Journal of Economic Geography, 24 (2). 219 - 240. ISSN 1468-2702

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Abstract

Asset confiscation regimes are present throughout Europe. The Italian State implements a policy stipulating the confiscation of real estate assets from individuals convicted of mafia-related crimes and the re-allocation of these assets to new uses. The policy of confiscation (confisca) and reallocation (destinazione) 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 evaluate the effects of this programme on local areas by estimating its impact on property values in the proximity of confiscations and re-allocations. The findings reveal a negative effect of confiscations and a positive effect of re-allocations on housing prices, mainly visible in mafia strongholds. Both of these trends can be observed in the time periods that directly follow instances of confiscation and re-allocation and appear to be highly localized. A drop in organized crime activity in the streets where re-allocations have occurred could account for some of the gain in property values caused by re-allocations. These findings have implications for the effectiveness of anti-mafia initiatives aimed at improving the quality of life in areas where criminal activity is more prevalent.

Item Type:	Article
Official URL:	https://academic.oup.com/joeg
Additional Information:	© 2023 The Author(s)
Divisions:	Geography & Environment
Subjects:	H Social Sciences > HV Social pathology. Social and public welfare. Criminology H Social Sciences > HD Industries. Land use. Labor
JEL classification:	H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities; Redistributive Effects; Environmental Taxes and Subsidies 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
Date Deposited:	08 Apr 2024 13:12
Last Modified:	15 Nov 2024 05:36
URI:	http://eprints.lse.ac.uk/id/eprint/122560

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