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Cocaine Production and Trafficking: What do we know?

Listed author(s):
  • Daniel Mejía


  • Carlos E. Posada


The main purpose of this chapter is to summarize the information currently available oncocaine production and trafficking. The chapter starts by describing the available dataon cocaine production and trade, the collection methodologies, (if available) used bydifferent sources, the main biases in the data, and the accuracy of different data sources.Next, the chapter states some of the key empirical questions and hypotheses regardingcocaine production and trade and takes a first look at how well the data matches thesehypotheses. Also, the chapter states some of the main puzzles in the cocaine market andstudies some of the possible explanations. These puzzles and empirical questions shouldguide future research into our understanding of the key determinants of illicit drugproduction and trafficking. Finally, the chapter studies the different policies thatproducer countries have adopted to fight against cocaine production and the roleconsumer countries play in the implementation of anti-drug policies.

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Paper provided by BANCO DE LA REPÚBLICA in its series BORRADORES DE ECONOMIA with number 003955.

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Length: 54
Date of creation: 26 Jun 2007
Handle: RePEc:col:000094:003955
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  1. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
  2. Jeff DeSimone & Matthew C. Farrelly, 2003. "Price and Enforcement Effects on Cocaine and Marijuana Demand," Economic Inquiry, Western Economic Association International, vol. 41(1), pages 98-115, January.
  3. 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.
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