Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs

Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs

This paper presents a general equilibrium model for the production, trafficking, and consumption of illegal drugs which endogenously determines relative prices and quantities. The model is calibrated to characterize the market for cocaine and is us...

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Bibliographic Details
Main Author: Chumacero, Rómulo A.
Format: Policy Research Working Paper
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ANNUAL GROWTH
CD
COMPETITIVE EQUILIBRIUM
CONSUMER PRICE
CONSUMERS
CONSUMPTION GOOD
CRRA
DEPRECIATION
DEPRECIATION RATE
ECONOMETRIC MODELS
ECONOMIC PERSPECTIVES
ECONOMIC RESEARCH
ECONOMIC THEORY
EQUILIBRIUM
EQUILIBRIUM CONDITIONS
EXPENDITURE
FUNCTIONAL FORMS
GENERAL EQUILIBRIUM
GENERAL EQUILIBRIUM ANALYSIS
GENERAL EQUILIBRIUM MODEL
GENERAL EQUILIBRIUM MODELS
GOVERNMENT EXPENDITURES
GROWTH RATE
IMPERFECT COMPETITION
INCOME EFFECT
INTERNATIONAL BANK
MACROECONOMICS
MARGINAL COST
NEGATIVE SUPPLY SHOCK
OPTIMAL ALLOCATIONS
OPTIMIZATION
PERFECT COMPETITION
POLITICAL ECONOMY
PRICE INCREASES
PRIVATE CONSUMPTION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
RELATIVE PRICE
RELATIVE PRICES
REPRESENTATIVE AGENT
RISK AVERSION
RISK FACTORS
SALE
SEIZURES
SIDE EFFECTS
STEADY STATE
SUBSTITUTE
SUPPLY RESPONSE
SUPPLY SHOCK
SUPPLY SIDE
TAX
TAX RATE
UNCERTAINTY
UTILITY FUNCTION
UTILITY FUNCTIONS
Online Access:http://documents.worldbank.org/curated/en/2008/03/9323848/evo-pablo-tony-diego-sonny-general-equilibrium-analysis-illegal-drugs-market
http://hdl.handle.net/10986/6525
id okr-10986-6525
recordtype oai_dc
spelling okr-10986-65252021-04-23T14:02:31Z Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs Chumacero, Rómulo A. ANNUAL GROWTH CD COMPETITIVE EQUILIBRIUM CONSUMER PRICE CONSUMERS CONSUMPTION GOOD CRRA DEPRECIATION DEPRECIATION RATE ECONOMETRIC MODELS ECONOMIC PERSPECTIVES ECONOMIC RESEARCH ECONOMIC THEORY EQUILIBRIUM EQUILIBRIUM CONDITIONS EXPENDITURE FUNCTIONAL FORMS GENERAL EQUILIBRIUM GENERAL EQUILIBRIUM ANALYSIS GENERAL EQUILIBRIUM MODEL GENERAL EQUILIBRIUM MODELS GOVERNMENT EXPENDITURES GROWTH RATE IMPERFECT COMPETITION INCOME EFFECT INTERNATIONAL BANK MACROECONOMICS MARGINAL COST NEGATIVE SUPPLY SHOCK OPTIMAL ALLOCATIONS OPTIMIZATION PERFECT COMPETITION POLITICAL ECONOMY PRICE INCREASES PRIVATE CONSUMPTION PRODUCTION FUNCTION PRODUCTION FUNCTIONS RELATIVE PRICE RELATIVE PRICES REPRESENTATIVE AGENT RISK AVERSION RISK FACTORS SALE SEIZURES SIDE EFFECTS STEADY STATE SUBSTITUTE SUPPLY RESPONSE SUPPLY SHOCK SUPPLY SIDE TAX TAX RATE UNCERTAINTY UTILITY FUNCTION UTILITY FUNCTIONS This paper presents a general equilibrium model for the production, trafficking, and consumption of illegal drugs which endogenously determines relative prices and quantities. The model is calibrated to characterize the market for cocaine and is used to analyze the effects of three types of policies: making the illegal activities riskier, increasing the penalties for conducting illegal activities, and legalizing previously illegal activities. Assessing the effects of these policies using the powerful tool of a general equilibrium model provides illuminating (and in cases surprising) results. 2012-05-29T14:31:28Z 2012-05-29T14:31:28Z 2008-03 http://documents.worldbank.org/curated/en/2008/03/9323848/evo-pablo-tony-diego-sonny-general-equilibrium-analysis-illegal-drugs-market http://hdl.handle.net/10986/6525 English Policy Research Working Paper; No. 4565 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ANNUAL GROWTH
CD
COMPETITIVE EQUILIBRIUM
CONSUMER PRICE
CONSUMERS
CONSUMPTION GOOD
CRRA
DEPRECIATION
DEPRECIATION RATE
ECONOMETRIC MODELS
ECONOMIC PERSPECTIVES
ECONOMIC RESEARCH
ECONOMIC THEORY
EQUILIBRIUM
EQUILIBRIUM CONDITIONS
EXPENDITURE
FUNCTIONAL FORMS
GENERAL EQUILIBRIUM
GENERAL EQUILIBRIUM ANALYSIS
GENERAL EQUILIBRIUM MODEL
GENERAL EQUILIBRIUM MODELS
GOVERNMENT EXPENDITURES
GROWTH RATE
IMPERFECT COMPETITION
INCOME EFFECT
INTERNATIONAL BANK
MACROECONOMICS
MARGINAL COST
NEGATIVE SUPPLY SHOCK
OPTIMAL ALLOCATIONS
OPTIMIZATION
PERFECT COMPETITION
POLITICAL ECONOMY
PRICE INCREASES
PRIVATE CONSUMPTION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
RELATIVE PRICE
RELATIVE PRICES
REPRESENTATIVE AGENT
RISK AVERSION
RISK FACTORS
SALE
SEIZURES
SIDE EFFECTS
STEADY STATE
SUBSTITUTE
SUPPLY RESPONSE
SUPPLY SHOCK
SUPPLY SIDE
TAX
TAX RATE
UNCERTAINTY
UTILITY FUNCTION
UTILITY FUNCTIONS
spellingShingle ANNUAL GROWTH
CD
COMPETITIVE EQUILIBRIUM
CONSUMER PRICE
CONSUMERS
CONSUMPTION GOOD
CRRA
DEPRECIATION
DEPRECIATION RATE
ECONOMETRIC MODELS
ECONOMIC PERSPECTIVES
ECONOMIC RESEARCH
ECONOMIC THEORY
EQUILIBRIUM
EQUILIBRIUM CONDITIONS
EXPENDITURE
FUNCTIONAL FORMS
GENERAL EQUILIBRIUM
GENERAL EQUILIBRIUM ANALYSIS
GENERAL EQUILIBRIUM MODEL
GENERAL EQUILIBRIUM MODELS
GOVERNMENT EXPENDITURES
GROWTH RATE
IMPERFECT COMPETITION
INCOME EFFECT
INTERNATIONAL BANK
MACROECONOMICS
MARGINAL COST
NEGATIVE SUPPLY SHOCK
OPTIMAL ALLOCATIONS
OPTIMIZATION
PERFECT COMPETITION
POLITICAL ECONOMY
PRICE INCREASES
PRIVATE CONSUMPTION
PRODUCTION FUNCTION
PRODUCTION FUNCTIONS
RELATIVE PRICE
RELATIVE PRICES
REPRESENTATIVE AGENT
RISK AVERSION
RISK FACTORS
SALE
SEIZURES
SIDE EFFECTS
STEADY STATE
SUBSTITUTE
SUPPLY RESPONSE
SUPPLY SHOCK
SUPPLY SIDE
TAX
TAX RATE
UNCERTAINTY
UTILITY FUNCTION
UTILITY FUNCTIONS
Chumacero, Rómulo A.
Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs
relation Policy Research Working Paper; No. 4565
description This paper presents a general equilibrium model for the production, trafficking, and consumption of illegal drugs which endogenously determines relative prices and quantities. The model is calibrated to characterize the market for cocaine and is used to analyze the effects of three types of policies: making the illegal activities riskier, increasing the penalties for conducting illegal activities, and legalizing previously illegal activities. Assessing the effects of these policies using the powerful tool of a general equilibrium model provides illuminating (and in cases surprising) results.
format Publications & Research :: Policy Research Working Paper
author Chumacero, Rómulo A.
author_facet Chumacero, Rómulo A.
author_sort Chumacero, Rómulo A.
title Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs
title_short Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs
title_full Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs
title_fullStr Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs
title_full_unstemmed Evo, Pablo, Tony, Diego, and Sonny : General Equilibrium Analysis of the Market for Illegal Drugs
title_sort evo, pablo, tony, diego, and sonny : general equilibrium analysis of the market for illegal drugs
publisher World Bank, Washington, DC
publishDate 2012
url http://documents.worldbank.org/curated/en/2008/03/9323848/evo-pablo-tony-diego-sonny-general-equilibrium-analysis-illegal-drugs-market
http://hdl.handle.net/10986/6525
_version_ 1764400622144061440

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