Prohibition vs. Taxification: Drug Control Policy in the USA
AbstractIt is generally thought that legalization of the sale and use of currently illegal drugs would lead to a dramatic increase in drug use and social costs associated with drug abuse and criminal behavior. In this paper we show that it is not necessarily the case that legalization of drugs would be followed by an increase in use. Specifically, if drugs were legalized and taxed, then drug use can be held constant by spending a small fraction of the tax revenues (10.8 per cent in the case of cocaine) on treatment programs. Even if none of the tax revenues are spent on reducing the demand for drugs, the external cost associated with the increase in use from legalization (i.e., costs to society caused by users but borne by others) is only a small fraction of the tax revenues collected (13.2 per cent in the case of cocaine).
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University of Hawaii at Manoa, Department of Economics in its series Working Papers with number 199608.
Length: 17 pages
Date of creation: 1996
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeffrey A. Miron & Jeffrey Zwiebel, 1991.
"Alcohol Consumption During Prohibition,"
NBER Working Papers
3675, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Web Technician).
If references are entirely missing, you can add them using this form.