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Anti-Drug Policies: On The Wrong Path To Peace

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  • Hernán Maldonado Jaramillo

Abstract

The objective of this research is to analyze why drug prohibition policy is the observed outcome on the international political arena and its effects on the Colombian conflict. A gravity model based on Akerlof (1997) is implemented to examine the international drug policy equilibrium of a game that shows how drug prohibition is a stable suboptimal policy. Finally, this work suggests how applying a less restrictive regulatory framework to the drug market can lead to a reduction on the rents obtained by illegal groups from the drug business and, therefore, to a reduction on the intensity of the Colombian conflict.

Suggested Citation

  • Hernán Maldonado Jaramillo, 2006. "Anti-Drug Policies: On The Wrong Path To Peace," Documentos CEDE 2011, Universidad de los Andes, Facultad de Economía, CEDE.
    • Handle: RePEc:col:000089:002011
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    References listed on IDEAS

    as
    1. Mauricio Rubio, 2003. "Del Rapto A La Pesca Milagrosa Breve Historia Del Secuestro En Colombia," Documentos CEDE 2262, Universidad de los Andes, Facultad de Economía, CEDE.
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    More about this item

    Keywords

    Drugs rents; Gravity model; Colombia; Conflict resolution;
    All these keywords.

    JEL classification:

    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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