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The fiscal expenditure of the war against possessors of illicit drugs: an approximation for Colombia

Author

Listed:
  • Isabel Gutiérrez

    (Universidad EAFIT)

  • Santiago Tobón

    (Universidad de Chicago e Innovations for Poverty Action)

Abstract

Around the world, governments spend enormous amounts of public funds in controlling possession, manufacturing and trafficking of illicit drugs. These costs are usually difficult to observe, as they correspond to the opportunity cost of many bureaucrats involved in the process. In this paper, we estimate the expected cost per arrest for possession, manufacturing or trafficking of illicit drugs for the case of Colombia. We find that the expected cost of an arrest is roughly COP$11 million, hence the expected total cost associated with the 984,106 arrests carried out between 2001 and 2015 adds up to COP$10.6 billion. Also, we analyse whether these expenditures are justified by the control of international drug trafficking, crime associated with drug dealing in local markets or drug abuse deterrence. We conclude that none of these reasons justify such fiscal expenditures; rather, these seem to be explained by an issue of incentive compatibility in Colombian authorities

Suggested Citation

  • Isabel Gutiérrez & Santiago Tobón, 2019. "The fiscal expenditure of the war against possessors of illicit drugs: an approximation for Colombia," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 91, pages 79-116, Julio - D.
    • Handle: RePEc:lde:journl:y:2019:i:91:p:79-116
    DOI: 10.17533/udea.le.n91a03
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    References listed on IDEAS

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    1. repec:oup:alecon:v:17:y:2015:i:2:p:495-528. is not listed on IDEAS
    2. D. Mark Anderson & Benjamin Hansen & Daniel I. Rees, 2015. "Medical Marijuana Laws and Teen Marijuana Use," American Law and Economics Review, American Law and Economics Association, vol. 17(2), pages 495-528.
    3. D. Mark Anderson & Benjamin Hansen & Daniel I. Rees, 2013. "Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption," Journal of Law and Economics, University of Chicago Press, vol. 56(2), pages 333-369.
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    RePEc Biblio mentions

    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Law and Economics > Economics of Crime > Crime Prevention > Police Funding

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    More about this item

    Keywords

    criminal justice system; social costs; illicit drugs; public expenditure; police incentives;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance

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