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Drug Policy and Federalism

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  • Konrad, Kai A

Abstract

Supply-restricting drug policy is inefficient from an economic point of view but is nevertheless widely used. This paper explains this phenomenon as individually rational behavior for local government. Because supply restriction gives addicts an incentive to migrate it has an external effect. This effect makes a policy of supply restrictions individually rational but leads to socially wasteful competition between local governments in a federal system. Copyright 1994 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 80 (1994)
Issue (Month): 1-2 (July)
Pages: 55-68

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Handle: RePEc:kap:pubcho:v:80:y:1994:i:1-2:p:55-68

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Naranjo, Alberto J., 2010. "Spillover effects of domestic law enforcement policies," International Review of Law and Economics, Elsevier, vol. 30(3), pages 265-275, September.
  2. Liu, Jin-Long & Liu, Jin-Tan & Hammitt, James K. & Chou, Shin-Yi, 1999. "The price elasticity of opium in Taiwan, 1914-1942," Journal of Health Economics, Elsevier, vol. 18(6), pages 795-810, December.
  3. Garoupa, Nuno, 1997. "Optimal law enforcement and the economics of the drug market: Some comments on the Schengen Agreements," International Review of Law and Economics, Elsevier, vol. 17(4), pages 521-535, December.
  4. Geys, Benny & Konrad, Kai A., 2010. "Federalism and optimal allocation across levels of governance," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-09, Social Science Research Center Berlin (WZB).

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