Kennedy and Di Tella have made an estimate of the cost of corruption. What are the estimated economic costs of organized crime activities and unfair prices set in the marketplace?

Question

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Kennedy and Di Tella estimate that corruption leads to a premium of 15% to 20% on prices set in the marketplace. This means that consumers end up paying more for goods and services, which has a negative impact on the economy. Additionally, organized crime activities also result in economic costs such as loss of income, damage to infrastructure and property, and increased expenses for law enforcement and security measures.

Kennedy and Di Tella Have Made an Estimate of the Cost