Crime And Fiscal Policy In Europe: The Effect Of Shadow Economy

Eleftherios Goulas; Socrates Karidis

doi:10.1142/S2194565920500177

Crime And Fiscal Policy In Europe: The Effect Of Shadow Economy

Eleftherios Goulas, Socrates Karidis

Vice-Chancellor's Office (VCO)

University of Patras

Research output: Contribution to journal › Article › peer-review

Abstract

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.

Original language	English
Article number	2050017
Journal	Global Economy Journal
Volume	20
Issue number	3
DOIs	https://doi.org/10.1142/S2194565920500177
Publication status	Published - 2 Oct 2020

Keywords

Crime
fiscal policy
shadow economy

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1142/S2194565920500177

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Crime And Fiscal Policy In Europe: The Effect Of Shadow Economy

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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