Pshisva, Rony; Suarez, Gustavo A. - Federal Reserve Board (Board of Governors of the … - 2006
This paper measures the impact of crime on firm investment by exploiting variation in kidnappings in Colombia from 1996 to 2002. Our central result is that firms invest less when kidnappings directly target firms. We also find that broader forms of crime--homicides, guerrilla attacks, and...