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Ensayos de Economía
Print version ISSN 0121-117XOn-line version ISSN 2619-6573
Abstract
RAFFO LOPEZ, Leonardo and SEGURA, José Luis. The Ineffectiveness of Drug-Supply Repression Policies: An Alternative Explanation. Ens. Econ. [online]. 2018, vol.28, n.52, pp.165-201. ISSN 0121-117X. https://doi.org/10.15446/ede.v28n52.71862.
The aim of the article is to present an alternative explanation for the ineffectiveness of drug-supply repression policies that focus on the functioning of drug-trafficking networks and on the increasing expected profits of traffickers. To this end, we solve and simulate the analytical model for irregular network structures proposed in Raffo (2015b), thus enabling a better understanding of the functioning of real drug trafficking and distribution networks. We show that a tougher anti-drug law enforcement policy can lead to a paradoxical increase in trafficker's aggregate expected profits, since the policy impacts the profits of individual traffickers in a heterogeneous way.
JEL: K42, D43, L13, C72, D85.
Keywords : drug trafficking; delinquent networks; illegal markets; game theory; social networks; law enforcement.