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Coca Leaves Production and Eradication: A General Equilibrium Analysis

Author

Listed:
  • Francesco Bogliacino

    (AIAS-Universiteit van Amsterdam and RISE Group)

  • Alberto J. Naranjo

    (Universidad de La Sabana)

Abstract

Law enforcement against illegal drug markets like coca leaf production have created big debate about its consequences and effectiveness. Since this enfocerment does not only affect the illegal market but also the legal ones it is then necessary to study its effects and effectiveness within a general equilibrium framework. This is the first contribution of this note. Moreover, using a unique database on Colombia we make a robust econometric check for the main results: we show that standard erradication policy have counterintuitive effects and do not reduce the production.

Suggested Citation

  • Francesco Bogliacino & Alberto J. Naranjo, 2012. "Coca Leaves Production and Eradication: A General Equilibrium Analysis," Economics Bulletin, AccessEcon, vol. 32(1), pages 382-397.
    • Handle: RePEc:ebl:ecbull:eb-11-00488
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2012/Volume32/EB-12-V32-I1-P35.pdf
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    References listed on IDEAS

    as
    1. Ana MaríaDíaz & FabioSánchez, 2004. "A Geography Of Illicit Crops (Coca Leaf) And Armed Conflict In Colombia," Documentos CEDE 001918, Universidad de los Andes – Facultad de Economía – CEDE.
    2. Ibanez, Marcela & Carlsson, Fredrik, 2010. "A survey-based choice experiment on coca cultivation," Journal of Development Economics, Elsevier, vol. 93(2), pages 249-263, November.
    3. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
    4. Moreno-Sanchez, Rocio & Kraybill, David S. & Thompson, Stanley R., 2003. "An Econometric Analysis of Coca Eradication Policy in Colombia," World Development, Elsevier, vol. 31(2), pages 375-383, February.
    5. Michele Boldrin, 2009. "Growth And Cycles, In The Mode Of Marx And Schumpeter," Scottish Journal of Political Economy, Scottish Economic Society, vol. 56(s1), pages 415-442, September.
    6. Shapiro, Carl & Stiglitz, Joseph E, 1984. "Equilibrium Unemployment as a Worker Discipline Device," American Economic Review, American Economic Association, vol. 74(3), pages 433-444, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Daniel Mejía & Pascual Restrepo & Sandra V. Rozo, 2017. "On the Effects of Enforcement on Illegal Markets: Evidence from a Quasi-Experiment in Colombia," The World Bank Economic Review, World Bank Group, vol. 31(2), pages 570-594.
    2. Reyes, Luis Carlos, 2014. "Estimating the Causal Effect of Forced Eradication on Coca Cultivation in Colombian Municipalities," World Development, Elsevier, vol. 61(C), pages 70-84.
    3. Vasquez Escallon, Juanita, 2015. "When too much punishment decreases legality. The case of coca-reducing policies in Colombia," VfS Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113156, Verein für Socialpolitik / German Economic Association.
    4. Miguel Serrano López, 2020. "Violencia y corrupción como estrategias de maximización en mercados ilegales: el caso de la coca," Revista Cuadernos de Economía, Universidad Nacional de Colombia -FCE - CID, vol. 39(81), pages 949-974, July.
    5. Juan Pablo Cote, 2019. "The Effect of Interdiction on Coca Cultivation in Colombia," Documentos CEDE 017316, Universidad de los Andes – Facultad de Economía – CEDE.

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    More about this item

    Keywords

    General Equilibrium; Three Stages Least Squares; Illegal Economy; Colombia;
    All these keywords.

    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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