The Determinant of Money Laundering: Evidence from Italian Regions

Following the INTERPOL’s definition, money laundering is: “any act or attempted act to conceal or disguise the identity of illegally obtained proceeds so that they appear to have originated from legitimate sources”. Illegally obtained funds are laundered and moved around the world using front companies, intermediaries and other money transmitters. In this way, the illegal funds remain hidden and are integrated into the legal economy. Such type of crime undermines financial institutions’ and jurisdictions’ reputation, compromises investors’ trust in them, and therefore weakens the entire financial system. By using annual data for the Italian regions (NUTS-2) over the period 2008 to 2015, this work aims to investigate the determinants of money laundering in Italy. Given the high heterogeneity in terms of economic and institutional characteristics, as well as for the activity of organized crime in financial-related activities, Italy is a compelling case study. Our main findings reveal that in most of the Italian regions enforcement activities do exert significant deterrence on criminal behaviors: a negative relationship between enforcement and illegal trafficking of waste can be identified only for very high levels of enforcement efforts. Moreover, we find that the major determinants influencing the rate of money laundering differ between northern-central and southern regions, confirming the existence of a regional dualism. In particular, while in the northern-central area the crime rate is positively related to the level of corruption, the incidence of mafia-type crimes and negatively to the education attainment, in the southern regions money laundering is positively related to the size of the gaming and gambling sector

Time-scale analysis non-local diffusion systems, applied to disease models

The objective of the present paper is to use the well known Ross-Macdonald models as a prototype, incorporating spatial movements, identifying different times scales and proving a singular perturbation result using a system of local and non-local diffusion. This results can be applied to the prototype model, where the vector has a fast dynamics, local in space, and the host has a slow dynamics, non-local in space

Early star formation traced by the highest redshift quasars

The iron abundance relative to alpha-elements in the circumnuclear region of quasars is regarded as a clock of the star formation history and, more specifically, of the enrichment by SNIa. We investigate the iron abundance in a sample of 22 quasars in the redshift range 3.0<z<6.4 by measuring their rest frame UV FeII bump, which is shifted into the near-IR, and by comparing it with the MgII 2798 flux. The observations were performed with a device that can obtain near-IR spectra in the range 0.8-2.4 um in one shot, thereby enabling an optimal removal of the continuum underlying the FeII bump. We detect iron in all quasars including the highest redshift (z=6.4) quasar currently known. The uniform observational technique and the wide redshift range allows a reliable study of the trend of the FeII/MgII ratio with redshift. We find the FeII/MgII ratio is nearly constant at all redshifts, although there is marginal evidence for a higher FeII/MgII ratio in the quasars at z~6. If the FeII/MgII ratio reflects the Fe/alpha abundance, this result suggests that the z~6 quasars have already undergone a major episode of iron enrichment. We discuss the possible implications of this finding for the star formation history at z>6. We also detect a population of weak iron emitters at z~4.5, which are possibly hosted in systems that evolved more slowly. Alternatively, the trend of the FeII/MgII ratio at high redshift may reflect significantly different physical conditions of the circumnuclear gas in such high redshift quasars.Comment: Replaced to match the accepted version (ApJL in press), 5 page