Arbeitspapier

The war on illegal drugs in producer and consumer countries: a simple analytical framework

This paper develops a model of the war against illegal drugs in both producer and consumer countries. The paper studies the trade-off faced by the government of the drug consumer country between prevention policies (aimed at reducing the demand for drugs) and enforcement policies (aimed at reducing the production and trafficking of drugs), and shows how the optimal allocation of resources between these two alternatives depends on the key parameters of the model. We use available data for the war on drugs in Colombia, and against consumption in the U.S., to calibrate the unobservable parameters of the model, such as the price elasticity of demand for cocaine; the effectiveness of prevention and treatment policies; and the relative effectiveness of interdiction efforts.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 2459

Classification
Wirtschaft
Conflict; Conflict Resolution; Alliances; Revolutions
Illegal Behavior and the Enforcement of Law
Subject
War on drugs
conflict
enforcement
prevention and treatment policies
Plan Colombia
Drogenpolitik
Drogenwirtschaft
Kolumbien
Drogenkonsum
USA
Kriminalitätsökonomik
Theorie

Event
Geistige Schöpfung
(who)
Mejía, Daniel
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2008

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Mejía, Daniel
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2008

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