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A choice experiment on coca cropping

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Author Info

  • Ibanez, Marcela

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Carlsson, Fredrik

    ()
    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

Between 1997 and 2005, 5.2 billion USD were invested to reduce cocaine production in Colombia, the world’s main cocaine producer. However, little is known about the effectiveness of policies targeting coca cultivation, this paper evaluates the effects of the two main policies: eradication and alternative development. We measure the responsiveness of farmers to eradication and alternative development programs using a survey based experiment. Our results support Becker’s (1968) model of crime participation and in addition shed light on other non-monetary factors that affect the coca cultivation decision. Social norms, legitimacy, and poverty are found to be affecting coca cultivation. We find that the responses are to a large extent consistent, and the model prediction of the proportion of farmer growing coca is accurate. We also illustrate how the results can be used to draw policy conclusions, but conclude that better information about the costs is needed.

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File URL: http://hdl.handle.net/2077/9556
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 287.

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Length: 26 pages
Date of creation: 13 Feb 2008
Date of revision: 01 Apr 2008
Handle: RePEc:hhs:gunwpe:0287

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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research

Keywords: Illegal drugs; Choice experiment; Colombia;

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  1. Moreno-Sanchez, Rocio & Kraybill, David S. & Thompson, Stanley R., 2003. "An Econometric Analysis of Coca Eradication Policy in Colombia," World Development, Elsevier, Elsevier, vol. 31(2), pages 375-383, February.
  2. Torgler, Benno, 2002. " Speaking to Theorists and Searching for Facts: Tax Morale and Tax Compliance in Experiments," Journal of Economic Surveys, Wiley Blackwell, Wiley Blackwell, vol. 16(5), pages 657-83, December.
  3. Glaeser, Edward L & Sacerdote, Bruce & Scheinkman, Jose A, 1996. "Crime and Social Interactions," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(2), pages 507-48, May.
  4. Andreoni, J. & Erard, B. & Feinstein, J., 1996. "Tax Compliance," Working papers, Wisconsin Madison - Social Systems 9610r, Wisconsin Madison - Social Systems.
  5. Butler, J S & Moffitt, Robert, 1982. "A Computationally Efficient Quadrature Procedure for the One-Factor Multinomial Probit Model," Econometrica, Econometric Society, Econometric Society, vol. 50(3), pages 761-64, May.
  6. Hausman, Daniel M & McPherson, Michael S, 1993. "Taking Ethics Seriously: Economics and Contemporary Moral Philosophy," Journal of Economic Literature, American Economic Association, vol. 31(2), pages 671-731, June.
  7. Louviere,Jordan J. & Hensher,David A. & Swait,Joffre D., 2000. "Stated Choice Methods," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521788304.
  8. Posner, Richard A, 1997. "Social Norms and the Law: An Economic Approach," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 365-69, May.
  9. Elster, Jon, 1989. "Social Norms and Economic Theory," Journal of Economic Perspectives, American Economic Association, American Economic Association, vol. 3(4), pages 99-117, Fall.
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