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Effect of Enforcement Shock on Pushers' Activities: Evidence from an Asian Drug-Selling Gang

Author

Listed:
  • Leong, Kaiwen

    () (Nanyang Technological University, Singapore)

  • Li, Huailu

    () (Fudan University, China)

  • Xu, Haibo

    () (Tongji University)

Abstract

We study a Singaporean drug-selling gang's dataset and empirically find that the gang's pushers purchased larger quantities of drugs during periods of enforcement shocks caused by enforcement activities targeting the gang's drug supply chain. This counter-intuitive finding can be explained by the pushers' profit targeting behavior. Given that enforcement shocks increased the pushers' cost of drugs, pushers must compensate by purchasing more drugs to sell in order to reach their profit targets.

Suggested Citation

  • Leong, Kaiwen & Li, Huailu & Xu, Haibo, 2019. "Effect of Enforcement Shock on Pushers' Activities: Evidence from an Asian Drug-Selling Gang," IZA Discussion Papers 12083, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp12083
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    References listed on IDEAS

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    More about this item

    Keywords

    crime; enforcement; labor supply;

    JEL classification:

    • J46 - Labor and Demographic Economics - - Particular Labor Markets - - - Informal Labor Market
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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