The War on Illegal Drugs in Producer and Consumer Countries: A simple analytical framework
This paper develops a simple model of the war against illegal drugs in producer and consumer countries. Our analysis shows how the equilibrium quantity of illegal drugs, as well as their price, depends on key parameters of the model, among them the price elasticity of demand, and the effectiveness of the resources allocated to enforcement and prevention and treatment policies. Importantly, this paper studies the trade-off faced by drug consumer country`s government between prevention policies (aimed at reducing the demand for illegal drugs) and enforcement policies (aimed at reducing the production and trafficking of illegal drugs in producer countries). We use available data for the war against cocaine production and trafficking in Colombia, and that against consumption in the U.S. in order to calibrate the unobservable parameters of the model. Among these are the effectiveness of prevention and treatment policies in reducing the demand for cocaine; the relative effectiveness of interdiction efforts at reducing the amount of cocaine reaching consumer countries; and the cost of illegal drug production and trafficking activities in producer countries.
|Date of creation:||01 Feb 2011|
|Date of revision:|
|Contact details of provider:|| |
References listed on IDEAS
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.:
- Cláudia Costa Storti & Paul De Grauwe, 2007. "Globalization and the Price Decline of Illicit Drugs," CESifo Working Paper Series 1990, CESifo Group Munich.
- Mejia, Daniel & Posada, Carlos Esteban, 2008.
"Cocaine production and trafficking : what do we know ?,"
Policy Research Working Paper Series
4618, The World Bank.
- Daniel Mejía & Carlos Esteban Posada, . "Cocaine Production and Trafficking: What do we know?," Borradores de Economia 444, Banco de la Republica de Colombia.
- Daniel Mejía & Carlos E. Posada, 2007. "Cocaine Production and Trafficking: What do we know?," BORRADORES DE ECONOMIA 003955, BANCO DE LA REPÚBLICA.
- Herschel Grossman & Daniel Mejía, 2008.
"The war against drug producers,"
Economics of Governance,
Springer, vol. 9(1), pages 5-23, January.
- Hirshleifer, Jack, 1991. "The Technology of Conflict as an Economic Activity," American Economic Review, American Economic Association, vol. 81(2), pages 130-34, May.
- Skaperdas, Stergios, 1996.
"Contest Success Functions,"
Springer;Society for the Advancement of Economic Theory (SAET), vol. 7(2), pages 283-90, February.
- Daniel Mejía & Pascual Restrepo, 2008.
"The War on Illegal Drug Production and Trafficking: An Economic Evaluation of Plan Colombia,"
005123, UNIVERSIDAD DE LOS ANDES-CEDE.
- Daniel Mejía & Pascual Restrepo, 2008. "The War on Illegal Drug Production and Trafficking: An Economic Evaluation of Plan Colombia," HiCN Working Papers 53, Households in Conflict Network.
- Gary S. Becker & Kevin M. Murphy & Michael Grossman, 2006. "The Market for Illegal Goods: The Case of Drugs," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 38-60, February.
When requesting a correction, please mention this item's handle: RePEc:col:000089:007960. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Universidad De Los Andes-Cede)
If references are entirely missing, you can add them using this form.