IDEAS home Printed from https://ideas.repec.org/a/rei/ecoins/v12y2010i23p229-258.html
   My bibliography  Save this article

Narcotráfico y conflicto: ¿por qué bajó el precio de la cocaína?

Author

Listed:
  • Leonardo Raffo López

    (Universidad del Valle)

Abstract

Combining the approaches of Ortiz and Mejía et al., this paper proposes a new model of drug trafficking and conflict. In a general equilibrium framework, an explanation of the downward trend in the price of cocaine over the last two decades is developed. The model shows that the main factor causing this trend is the increase in productivity in the production of cocaine, which has counterbalanced the impact of the supply-side control policies and the decrease in the number of hectares of land planted with coca.

Suggested Citation

  • Leonardo Raffo López, 2010. "Narcotráfico y conflicto: ¿por qué bajó el precio de la cocaína?," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 12(23), pages 229-258, July-Dece.
    • Handle: RePEc:rei:ecoins:v:12:y:2010:i:23:p:229-258
    as

    Download full text from publisher

    File URL: http://www.uexternado.edu.co/facecono/ecoinstitucional/workingpapers/lraffo23.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Carlos Humberto Ortiz Profesor del, 2002. "Luchando infructuosamente contra la hidra: un modelo sencillo del narcotráfico," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, December.
    2. Suren Basov & Mireille Jacobson & Jeffrey A. Miron, 2001. "Prohibition and the Market for Illegal Drugs," World Economics, World Economics, 1 Ivory Square, Plantation Wharf, London, United Kingdom, SW11 3UE, vol. 2(4), pages 133-157, October.
    3. Ana María Ibánez & Carlos Eduardo Vélez, 2003. "Instrumentos De Atención De La Población Desplazada En Colombia: Una Distribución Desigual De Las Responsabilidades Municipales," Documentos CEDE 2892, Universidad de los Andes, Facultad de Economía, CEDE.
    4. Herschel Grossman & Daniel Mejía, 2008. "The war against drug producers," Economics of Governance, Springer, vol. 9(1), pages 5-23, January.
    5. Daniel Mejía & Carlos E. Posada, 2007. "Cocaine Production and Trafficking: What do we know?," Borradores de Economia 3955, Banco de la Republica.
    6. Hirshleifer, Jack, 1995. "Anarchy and Its Breakdown," Journal of Political Economy, University of Chicago Press, vol. 103(1), pages 26-52, February.
    7. Daniel Mejía & Pascual Restrepo, 2008. "The War on Illegal Drug Production and Trafficking: An Economic Evaluation of Plan Colombia," Documentos CEDE 5123, Universidad de los Andes, Facultad de Economía, CEDE.
    8. Daniel Mejía & Pascual Restrepo, 2008. "The War on Illegal Drug Production and Trafficking: An Economic Evaluation of Plan Colombia," Documentos CEDE 005123, Universidad de los Andes - CEDE.
    9. repec:bla:econom:v:64:y:1997:i:253:p:101-17 is not listed on IDEAS
    10. Gary S. Becker & Kevin M. Murphy & Michael Grossman, 2004. "The Economic Theory of Illegal Goods: The Case of Drugs," NBER Working Papers 10976, National Bureau of Economic Research, Inc.
    11. Gary S. Becker & Kevin M. Murphy & Michael Grossman, 2006. "El mercado de bienes ilegales: el caso de la droga," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 8(15), pages 17-42, July-Dece.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leonardo Raffo López & José Luis Segura, 2018. "La ineficacia de las políticas de represión a la oferta de drogas: una explicación alternativa," Ensayos de Economía 16782, Universidad Nacional de Colombia Sede Medellín.
    2. Leonardo Raffo López & José Luis Segura, 2015. "Las redes del narcotráfico y sus interacciones: un modelo teórico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(32), pages 183-212, January-J.
    3. Leonardo Raffo López, 2015. "Law enforcement and drug trafficking networks: a simple model," Documentos de Trabajo 13014, Universidad del Valle, CIDSE.
    4. Miguel Serrano López, 2020. "Violencia y corrupción como estrategias de maximización en mercados ilegales: el caso de la coca," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 39(81), pages 949-974, July.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Leonardo Raffo López & José Luis Segura, 2015. "Las redes del narcotráfico y sus interacciones: un modelo teórico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(32), pages 183-212, January-J.
    2. Mejia, Daniel & Restrepo, Pascual, 2016. "The economics of the war on illegal drug production and trafficking," Journal of Economic Behavior & Organization, Elsevier, vol. 126(PA), pages 255-275.
    3. Daniel Mejía, 2008. "The War on Illegal Drugs in Producer and Consumer Countries: A Simple Analytical Framework," CESifo Working Paper Series 2459, CESifo.
    4. Adriana Camacho & Alejandro Gaviria & Catherine Rodríguez, 2010. "El consumo de droga en Colombia," Documentos CEDE 7607, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Miguel Serrano López, 2020. "Violencia y corrupción como estrategias de maximización en mercados ilegales: el caso de la coca," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, vol. 39(81), pages 949-974, July.
    6. Juan Carlos Mu�oz-Mora & Santiago Tob�n-Zapata & Jesse d'Anjou, 2014. "Does land titling matter? The role of land property rights in the war on illicit crops in Colombia," HiCN Working Papers 168, Households in Conflict Network.
    7. Lim, King Yoong & Morris, Diego, 2020. "The economics of the illicit drugs-for-guns trade and growth," Economic Modelling, Elsevier, vol. 91(C), pages 218-232.
    8. Mariana Blanco & Juan F. Vargas, 2010. "Empowering IDPs with SMS: A Randomized Controlled Trial in Bogota," Research Department Publications 4704, Inter-American Development Bank, Research Department.
    9. Leonardo Raffo López & José Luis Segura, 2018. "La ineficacia de las políticas de represión a la oferta de drogas: una explicación alternativa," Ensayos de Economía 16782, Universidad Nacional de Colombia Sede Medellín.
    10. Dhaval Dave, 2004. "Illicit Drug Use Among Arrestees and Drug Prices," NBER Working Papers 10648, National Bureau of Economic Research, Inc.
    11. Muñoz-Mora, Juan Carlos & Tobón, Santiago & d’Anjou, Jesse Willem, 2018. "The role of land property rights in the war on illicit crops: Evidence from Colombia," World Development, Elsevier, vol. 103(C), pages 268-283.
    12. Arias-R., Omar Fdo. & Aza-Jacome, Alfonso, 2014. "From monopsonistic insurgent groups to oligopolistic cocaine traffickers: the market of cocaine in Colombia," MPRA Paper 60000, University Library of Munich, Germany.
    13. Gerson Javier Pérez V., 2012. "Goals Met or Just Empty Promises? First Version of the Democratic Security Policy in Colombia," Borradores de Economia 9408, Banco de la Republica.
    14. Dave, Dhaval, 2006. "The effects of cocaine and heroin price on drug-related emergency department visits," Journal of Health Economics, Elsevier, vol. 25(2), pages 311-333, March.
    15. Michael Grossman, 2005. "Individual Behaviours and Substance Use: The Role of Price," Advances in Health Economics and Health Services Research, in: Substance Use: Individual Behaviour, Social Interactions, Markets and Politics, pages 15-39, Emerald Group Publishing Limited.
    16. Laura Atuesta & Geoffrey J.D. Hewings, 2013. "Economic Welfare Analysis Of The Legalization Of Drugs: A Cge Microsimulation Model For Colombia," Economic Systems Research, Taylor & Francis Journals, vol. 25(2), pages 190-211, March.
    17. Juan David Prada-Sarmiento, 2010. "Uncertainty in conflicts," Documentos CEDE 7713, Universidad de los Andes, Facultad de Economía, CEDE.
    18. Juan Camilo Castillo, Daniel Mejia, and Pascual Restrepo, 2014. "Scarcity without Leviathan: The Violent Effects of Cocaine Supply Shortages in the Mexican Drug War - Working Paper 356," Working Papers 356, Center for Global Development.
    19. Daniel Mejía & Pascual Restrepo, 2008. "The War on Illegal Drug Production and Trafficking: An Economic Evaluation of Plan Colombia," Documentos CEDE 005123, Universidad de los Andes - CEDE.
    20. Edgar H. Sanchez-Cuevas, 2018. "Fighting Fire with Aid: Development Assistance as Counterinsurency Tool. Evidence for Colombia," Documentos CEDE 16378, Universidad de los Andes, Facultad de Economía, CEDE.

    More about this item

    Keywords

    illegal markets; drug trafficking; economic theory of contests; illegal armed groups;
    All these keywords.

    JEL classification:

    • D51 - Microeconomics - - General Equilibrium and Disequilibrium - - - Exchange and Production Economies
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rei:ecoins:v:12:y:2010:i:23:p:229-258. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Paola Rodríguez (email available below). General contact details of provider: https://edirc.repec.org/data/feextco.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.