Extortion

Konrad, Kai A. und Skaperdas, Stergios (1998): Extortion. In: Economica, Bd. 65, Nr. 260: S. 461-477

Abstract

Extortion of productive enterprises ('shops') by organized crime groups ('gangs') takes place in virtually all economies. We develop a framework to study this activity. The main harm of extortion comes from the long-run erosion and distortion of useful production, as well as from the destruction of property that we show can occur in equilibrium. Among other results, we also find: gangs may increase their activity in response to increased police protection; often, but not always, forward-looking gangs induce lower resource waste than myopic gangs.

• Dokumententyp: Zeitschriftenartikel
• Publikationsform: Publisher's Version
• Keywords: corruption; crime; parallel economy
• Fakultät: Volkswirtschaft > Lehrstühle > MPI für Steuerrecht und Öffentliche Finanzen
• Themengebiete: 300 Sozialwissenschaften > 330 Wirtschaft
• ISSN: 0013-0427
• Sprache: Englisch