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Counterproductive Counternarcotic Strategies?

  • Andersson, Camilla I.M.
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    We model the economic incentives surrounding opium crop production in Afghanistan. Specifically, we examine the impact of eradication policies when opium is used as a means of obtaining credit, and when the crops are produced in sharecropping arrangements. The analysis suggests that when perfect credit markets are available, an increased risk of eradication will lead to less land being allocated to opium poppy. However, when opium is used as a means of obtaining credit, the effects of eradication are no longer clear-cut. Finally, under sharecropping arrangements, increased risk of eradication will make the tenants worse off, while landlords may benefit.

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    File URL: http://purl.umn.edu/118959
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    Paper provided by Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development in its series Discussion Papers with number 118959.

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    Date of creation: Nov 2011
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    Handle: RePEc:ags:gagfdp:118959
    Contact details of provider: Postal: Platz der Göttinger Sieben 5, D-37073 Göttingen
    Web page: http://www.uni-goettingen.de/globalfood

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    1. Guirkinger, Catherine & Boucher, Stephen R., 2004. "Risk, Wealth And Sectoral Choice In Rural Credit Markets," 2004 Annual meeting, August 1-4, Denver, CO 20077, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Marcela Ibanez & Fredrik Carlsson, 2009. "A survey-based choice experiment on coca cultivation," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 17, Courant Research Centre PEG.
    3. Jeffrey Clemens, 2008. "Opium in Afghanistan: Prospects for the Success of Source Country Drug Control Policies," Journal of Law and Economics, University of Chicago Press, vol. 51(3), pages 407-432, 08.
    4. Braverman, Avishay & Stiglitz, Joseph E., 1986. "Landlords, tenants and technological innovations," Journal of Development Economics, Elsevier, vol. 23(2), pages 313-332, October.
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