Scandinavian Working Papers in Economics
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Department of Economics, Stockholm University Research Papers in Economics, Department of Economics, Stockholm University

No 2004:13:
How Do Drug Lords in Final Destination Countries Respond to Anti-Drug Policies?

Adam Jacobsson () and Alberto Naranjo ()

Abstract: This paper models how drug lords in final destination countries respond to two types of government anti-drug policies: demand and supply oriented. Supply policies (crop eradication, interdiction, etcetera) are modeled in line with the previous literature, that is, they increase production costs. Demand policies (domestic law enforcement, demand reduction programs, etcetera) are modeled within a conflict framework with drug lords over the control of distribution channels for illegal drugs, which is novel. The model predicts drug use, price and indirectly drug related violent crime. These predictions appear to be consistent with the data.

Keywords: drug policy; conflict; violent crime; (follow links to similar papers)

JEL-Codes: D74; I18; (follow links to similar papers)

20 pages, September 20, 2004

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