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The Value of Connections: Evidence from the Italian-American Mafia

Mastrobuoni, G (2015) 'The Value of Connections: Evidence from the Italian-American Mafia.' Economic Journal, 125 (586). F256 - F288. ISSN 0013-0133

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© 2015 Royal Economic Society. This study uses declassified data on US mafia members of the 1950s and 1960s to estimate the criminal network effect on their economic status. I measure economic status exploiting detailed information about their place of residence. Housing values are reconstructed using current deflated transactions data. I deal with non-random sampling of mobsters modelling investigations on connections as Markov chains. Reverse causality between economic status and the gangster's position in the network is solved exploiting exogenous exposure to pre-immigration connections. A standard deviation increase in closeness centrality increases economic status by between one-quarter and three-quarters of a standard deviation.

Item Type: Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HV Social pathology. Social and public welfare
Divisions: Faculty of Social Sciences > Economics, Department of
Depositing User: Jim Jamieson
Date Deposited: 09 Feb 2015 15:58
Last Modified: 23 Jan 2019 02:15

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