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Cocaine Production and Trafficking: What do we know?

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  • Daniel Mejía

    ()

  • Carlos Esteban Posada

    ()

Abstract

The main purpose of this chapter is to summarize the information currently available on cocaine production and trafficking. The chapter starts by describing the available data on cocaine production and trade, the collection methodologies, (if available) used by different sources, the main biases in the data, and the accuracy of different data sources. Next, the chapter states some of the key empirical questions and hypotheses regarding cocaine production and trade and takes a first look at how well the data matches these hypotheses. Also, the chapter states some of the main puzzles in the cocaine market and studies some of the possible explanations. These puzzles and empirical questions should guide future research into our understanding of the key determinants of illicit drug production and trafficking. Finally, the chapter studies the different policies that producer countries have adopted to fight against cocaine production and the role consumer countries play in the implementation of anti-drug policies.

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Paper provided by Banco de la Republica de Colombia in its series Borradores de Economia with number 444.

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Handle: RePEc:bdr:borrec:444

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Keywords: Cocaine; Narcotraffic; War on Drugs. Classification JEL: K42; C81; H56.;

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  1. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 96(4), pages 675-700, August.
  2. Frank J. Chaloupka & Michael Grossman & John A. Tauras, 1999. "The Demand for Cocaine and Marijuana by Youth," NBER Chapters, National Bureau of Economic Research, Inc, in: The Economic Analysis of Substance Use and Abuse: An Integration of Econometrics and Behavioral Economic Research, pages 133-156 National Bureau of Economic Research, Inc.
  3. Jeff DeSimone & Matthew C. Farrelly, 2003. "Price and Enforcement Effects on Cocaine and Marijuana Demand," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 41(1), pages 98-115, January.
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Cited by:
  1. Juan Carlos Muñoz-Mora & Santiago Tobón-Zapata & Jesse d'Anjou, 2014. "Does land titling matter? The role of land property rights in the war on illicit crops in Colombia," HiCN Working Papers 168, Households in Conflict Network.
  2. Gerson Javier Pérez V., 2012. "Goals Met or Just Empty Promises? First Version of the Democratic Security Policy in Colombia," Borradores de Economia 700, Banco de la Republica de Colombia.
  3. Leonardo Raffo López, 2010. "Narcotráfico y conflicto: ¿por qué bajó el precio de la cocaína?," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, Universidad Externado de Colombia - Facultad de Economía, vol. 12(23), pages 229-258, July-Dece.
  4. Daniel Mejía, 2008. "The War on Illegal Drugs in Producer and Consumer Countries: A Simple Analytical Framework," CESifo Working Paper Series 2459, CESifo Group Munich.
  5. Gerson Javier Pérez Valbuena, 2012. "Primera versión de la Política de Seguridad Democrática: Se cumplieron los objetivos?," DOCUMENTOS DE TRABAJO SOBRE ECONOMÍA REGIONAL, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL 009385, BANCO DE LA REPÚBLICA - ECONOMÍA REGIONAL.
  6. International Monetary Fund, 2011. "The Relationship Between Illicit Coca Production and Formal Economic Activity in Peru," IMF Working Papers 11/182, International Monetary Fund.
  7. Botero Degiovanni, Hernan, 2013. "The Effects of Drug Enforcement on Violence in Colombia 1999-2010: A Spatial Econometric Approach," MPRA Paper 49459, University Library of Munich, Germany.
  8. L. Leoncini & F. Rentocchini, 2010. "Counteracting cocaine production. An analysis based on a novel dataset," Working Papers 693, Dipartimento Scienze Economiche, Universita' di Bologna.

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