Violence affects the economy because for one, it can damage or completely destroy a building/ or something less drastic. Then the town/ government will need to pay for the repairs. Then violence, as bad as it is to hear, will affect the economy due to the amount of money used to purchase weapons. Generally, warfare is a heavy business and thus will affect that small worlds' economy. It can also affect the economy because the government needs to put plans and teams into place which will cost money, and if the leads go nowhere then the money is needed on more demand so that the search can go longer for the suspect and or gang being hunted.
"This is my personal opinion, it is probably not 100% accurate, but I hope this still helps." :)