Groot, Olaf J. de; Rablen, Matthew D.; Shortland, Anja - DIW Berlin (Deutsches Institut für Wirtschaftsforschung) - 2011
We present a theoretical model postulating that the relationship between crime and governance is "hump-shaped" rather than linearly decreasing. State failure, anarchy and a lack of infrastructure are not conducive for the establishment of any business. This includes illegal businesses, as...