reduces both moderate and extreme violence. The reason is that a high penalty keeps relatively 'gutless' individuals from … relatively 'tough' individuals to commit moderately violent acts and so makes moderate violence more attractive for otherwise …

This paper examines how firms in an emerging economy are affected by violence due to drug trafficking. Employing rich … plausibly exogenous spatiotemporal variation in the homicide rate during the outbreak of drug-trade related violence in Mexico …, I show that violence has a significant negative impact on plant output, product scope, employment, and capacity …