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Should the Dea's Stride Data Be Used for Economic Analyses of Markets for Illegal Drugs?

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  • Horowitz, Joel L.

    ()
    (University of Iowa)

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    Abstract

    The U.S. Drug Enforcement Administration’s (DEA’s) STRIDE data contain records of acquisitions of illegal drugs by undercover agents and informants of the DEA and Metropolitan Police of the District of Columbia. These data are widely used in economic analyses of markets for illegal drugs. The STRIDE data are mainly records of acquisitions made to support criminal investigations and are not a random sample of an identifiable population. This paper presents evidence that the STRIDE data on cocaine and heroin prices are not representative of market prices for those drugs. It is concluded that the usefulness of the STRIDE data for economic and policy analysis is limited at best. STRIDE is not a reliable source of price data for economic and policy analyses that require accurate measures of price levels and variations.

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    File URL: http://www.biz.uiowa.edu/econ/papers/uia/STRIDE_rev1a.pdf
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    Bibliographic Info

    Paper provided by University of Iowa, Department of Economics in its series Working Papers with number 00-02.

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    Length: 28 pages
    Date of creation: Mar 2000
    Date of revision:
    Handle: RePEc:uia:iowaec:00-02

    Contact details of provider:
    Postal: University of Iowa, Department of Economics, Henry B. Tippie College of Business, Iowa City, Iowa 52242
    Phone: (319) 335-0829
    Fax: (319) 335-1956
    Web page: http://tippie.uiowa.edu/economics/
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    Keywords: price index; sample design; cocaine; heroin;

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    1. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 401-11, July.
    2. Michael Grossman & Frank J. Chaloupka & Charles C. Brown, 1996. "The Demand for Cocaine by Young Adults: A Rational Addiction Approach," NBER Working Papers 5713, National Bureau of Economic Research, Inc.
    3. White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
    4. Frank J. Chaloupka & Michael Grossman & John A. Tauras, 1999. "The Demand for Cocaine and Marijuana by Youth," NBER Chapters, 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.
    5. Hahn, Jinyong, 1995. "Bootstrapping Quantile Regression Estimators," Econometric Theory, Cambridge University Press, vol. 11(01), pages 105-121, February.
    6. Jeffrey DeSimone, 1998. "Is Marijuana a Gateway Drug?," Eastern Economic Journal, Eastern Economic Association, vol. 24(2), pages 149-164, Spring.
    7. Yuan, Yuehong & Caulkins, Jonathan P., 1998. "The Effect of Variation in High-level Domestic Drug Enforcement on Variation in Drug Prices," Socio-Economic Planning Sciences, Elsevier, vol. 32(4), pages 265-276, December.
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