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Can we do policy recommendations from a framed field experiment? The case of coca cultivation in Colombia

  • Ibanez, Marcela

    ()

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Martinsson, Peter

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Laboratory experiments are potentially effective tools for studying behavior in settings where little or no information would otherwise exist such as participation in illicit activities. However, using laboratory experiments to draw policy recommendations is highly debatable. We investigate the external validity of a framed field experiment that mimics coca cultivation and find evidence that behavior in the experiment is consistent with self-reported behavior. We use the experiment to discuss the effectiveness of carrot and stick policies on coca investments. The experiment indicates that subjects are more responsive to changes in the relative profit of cattle farming than to changes in the probability of coca eradication.

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File URL: http://hdl.handle.net/2077/10170
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Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 306.

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Length: 28 pages
Date of creation: 27 May 2008
Date of revision:
Handle: RePEc:hhs:gunwpe:0306
Contact details of provider: Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/

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