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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

Suggested Citation

  • Konrad, Kai A, 1994. "Drug Policy and Federalism," Public Choice, Springer, vol. 80(1-2), pages 55-68, July.
    • Handle: RePEc:kap:pubcho:v:80:y:1994:i:1-2:p:55-68
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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. Geys, Benny & Konrad, Kai A., . "Federalism and optimal allocation across levels of governance," Chapters in Economics,, University of Munich, Department of Economics.
    3. 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.
    4. 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.

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