IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/33478.html
   My bibliography  Save this paper

Estimating the causal effect of forced eradication on coca cultivation in Colombian municipalities

Author

Listed:
  • Reyes, Luis Carlos

Abstract

Coca eradication has been aggressively pursued by the Colombian government to reduce the amount of land that agricultural households in the Andean country devote to this illegal crop. However, little work has been done to assess the causal effect of the policy on land allocation decisions. I use a six year panel of observations covering the entire country for the years 2001-2006 to estimate this effect at the municipality level, exploiting exogenous sources of variation in eradication and taking an IV approach to estimation. The instruments are derived from changes in the expected cost of coca eradication as crews get far from the zone where Antinarcotics Police helicopters can protect them from the illegal armed groups that try to shoot them down. IV estimation shows that the causal effect of a one percent increase in eradication is slightly less than a one percent increase in coca cultivation.

Suggested Citation

  • Reyes, Luis Carlos, 2011. "Estimating the causal effect of forced eradication on coca cultivation in Colombian municipalities," MPRA Paper 33478, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:33478
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/33478/1/MPRA_paper_33478.pdf
    File Function: original version
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Mirko Draca & Stephen Machin & Robert Witt, 2011. "Panic on the Streets of London: Police, Crime, and the July 2005 Terror Attacks," American Economic Review, American Economic Association, vol. 101(5), pages 2157-2181, August.
    2. Steven D. Levitt, 2002. "Using Electoral Cycles in Police Hiring to Estimate the Effects of Police on Crime: Reply," American Economic Review, American Economic Association, vol. 92(4), pages 1244-1250, September.
    3. Ibanez, Marcela & Carlsson, Fredrik, 2010. "A survey-based choice experiment on coca cultivation," Journal of Development Economics, Elsevier, vol. 93(2), pages 249-263, November.
    4. Lara Shore-Sheppard, 1996. "The Precision of Instrumental Variables Estimates With Grouped Data," Working Papers 753, Princeton University, Department of Economics, Industrial Relations Section..
    5. Joshua D. Angrist & Adriana D. Kugler, 2008. "Rural Windfall or a New Resource Curse? Coca, Income, and Civil Conflict in Colombia," The Review of Economics and Statistics, MIT Press, vol. 90(2), pages 191-215, May.
    6. Carlos Eduardo Vargas Manrique, 2004. "Cultivos ilícitos y erradicación forzosa en Colombia," REVISTA CUADERNOS DE ECONOMÍA, UN - RCE - CID, December.
    7. 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, August.
    8. Kurosaki, Takashi & Fafchamps, Marcel, 2002. "Insurance market efficiency and crop choices in Pakistan," Journal of Development Economics, Elsevier, vol. 67(2), pages 419-453, April.
    9. Klick, Jonathan & Tabarrok, Alexander, 2005. "Using Terror Alert Levels to Estimate the Effect of Police on Crime," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 267-279, April.
    10. Moreno-Sanchez, Rocio & Kraybill, David S. & Thompson, Stanley R., 2003. "An Econometric Analysis of Coca Eradication Policy in Colombia," World Development, Elsevier, vol. 31(2), pages 375-383, February.
    11. Rosenzweig, Mark R & Binswanger, Hans P, 1993. "Wealth, Weather Risk and the Composition and Profitability of Agricultural Investments," Economic Journal, Royal Economic Society, vol. 103(416), pages 56-78, January.
    12. Justin McCrary, 2002. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime: Comment," American Economic Review, American Economic Association, vol. 92(4), pages 1236-1243, September.
    13. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August.
    14. Maria Eugenia PINTO BORREGO & Andrés VERGARA BALLEN & Yilberto LAHUERTA PERCIPIANO, 2005. "Costos generados por la violencia armada en Colombia: 1993-2003," ARCHIVOS DE ECONOMÍA 002209, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
    15. repec:fth:prinin:374 is not listed on IDEAS
    16. Rafael Di Tella & Ernesto Schargrodsky, 2004. "Do Police Reduce Crime? Estimates Using the Allocation of Police Forces After a Terrorist Attack," American Economic Review, American Economic Association, vol. 94(1), pages 115-133, March.
    17. Dammert, Ana C., 2008. "Child labor and schooling response to changes in coca production in rural Peru," Journal of Development Economics, Elsevier, vol. 86(1), pages 164-180, April.
    18. Ryan S. Johnson & Shawn Kantor & Price V. Fishback, 2007. "Striking at the Roots of Crime: The Impact of Social Welfare Spending on Crime During the Great Depression," NBER Working Papers 12825, National Bureau of Economic Research, Inc.
    19. Levitt, Steven D, 1997. "Using Electoral Cycles in Police Hiring to Estimate the Effect of Police on Crime," American Economic Review, American Economic Association, vol. 87(3), pages 270-290, June.
    20. Lara D. Shore-Sheppard, 1996. "The Precision of Instrumental Variables Estimates With Grouped Data," Working Papers 753, Princeton University, Department of Economics, Industrial Relations Section..
    21. Jonathan Morduch, 1995. "Income Smoothing and Consumption Smoothing," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 103-114, Summer.
    22. Francesco Bogliacino & Alberto J. Naranjo, 2012. "Coca Leaves Production and Eradication: A General Equilibrium Analysis," Economics Bulletin, AccessEcon, vol. 32(1), pages 382-397.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:oup:wbecrv:v:31:y:2017:i:2:p:570-594. is not listed on IDEAS
    2. José Fernández & Matteo Pazzona, 2015. "Evaluating the Spillover Effects of the Plan Colombia in Ecuador," Bristol Economics Discussion Papers 15/667, Department of Economics, University of Bristol, UK.
    3. Daniel Mejía & Pascual Restrepo & Sandra V. Rozo, 2017. "On the Effects of Enforcement on Illegal Markets: Evidence from a Quasi-Experiment in Colombia," World Bank Economic Review, World Bank Group, vol. 31(2), pages 570-594.
    4. Austin L. Wright, 2016. "Economic Shocks and Rebel," HiCN Working Papers 232, Households in Conflict Network.
    5. Vasquez Escallon, Juanita, 2015. "When too much punishment decreases legality. The case of coca-reducing policies in Colombia," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113156, Verein für Socialpolitik / German Economic Association.
    6. repec:eee:jpolmo:v:39:y:2017:i:5:p:741-761 is not listed on IDEAS
    7. Marcela Ibanez & Juanita Vasquez, 2016. "Can we fight drugs using communication campaigns? A framed field experiment," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 199, Courant Research Centre PEG.
    8. Marcela Ibanez, 2013. "Is the war on drugs working? Examining the Colombian case using micro data," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 148, Courant Research Centre PEG.
    9. repec:eee:jhecon:v:54:y:2017:i:c:p:147-160 is not listed on IDEAS

    More about this item

    Keywords

    Agricultural Development; Coca; Cocaine; Colombia; Illegal Crops; crime;

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33478. 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: (Joachim Winter) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.