Arbeitspapier

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

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.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 12083

Classification
Wirtschaft
Informal Labor Markets
Illegal Behavior and the Enforcement of Law
Subject
crime
enforcement
labor supply

Event
Geistige Schöpfung
(who)
Leong, Kaiwen
Li, Huailu
Xu, Haibo
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2019

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Leong, Kaiwen
  • Li, Huailu
  • Xu, Haibo
  • Institute of Labor Economics (IZA)

Time of origin

  • 2019

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