Who crops coca and why? The case of Colombian farmers
AbstractApproximately 1.2% of Colombia’s GNP is spent every year on the war on drugs, but very little is known about coca farming decisions at the household level. In order to understand the decision to cultivate coca as well as that of the amount of land to use for its cultivation, we develop an extended version of the portfolio model of crime that considers the effects of behavioral norms and lack of options in the legal economy. The model is tested using data from an original survey with coca and non-coca farmers living in Putumayo, Colombia. We find that farmers react to economic incentives and hence eradication and substitution programs reduce coca cultivation. More interestingly, we find that coca cultivation decisions are explained by moral considerations as well as by the impossibility of making a living from legal forms of agriculture.
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Bibliographic InfoPaper provided by Courant Research Centre PEG in its series Courant Research Centre: Poverty, Equity and Growth - Discussion Papers with number 40.
Date of creation: 13 Aug 2010
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Coca; Colombia; Portfolio Model of Crime; Norms of Behavior;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
- K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
- Z12 - Other Special Topics - - Cultural Economics - - - Religion
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
This paper has been announced in the following NEP Reports:
- NEP-AGR-2010-10-09 (Agricultural Economics)
- NEP-ALL-2010-10-09 (All new papers)
- NEP-LAM-2010-10-09 (Central & South America)
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