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We analyse the risk of mafia capture of firms operating in the legal economy. Specifically, we study the relationship between firm performance and mafia infiltration. To overcome possible endogeneity concerns we exploit the abrupt drop in revenues caused by the (unexpected) Covid-19 related...
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aftermath of the exogenous shock arising from Covid-19. To address this objective, this article applies a fractional response … exogenous shock. …
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We analyze shocks to productivity, collateral constraint (credit shock), firm operation, and labor disutility in a …. Compared to the productivity shock, the credit and the lockdown shocks generate larger changes in firm entry and exit. The … model of firm dynamics with entry and exit. Shocks to firm operation and labor disutility capture COVID-19 lockdowns …
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