Optimal Drug Policy in Low-Income Neighborhoods.
Ontology highlight
ABSTRACT:
SUBMITTER: Chang SW
PROVIDER: S-EPMC5014442 | biostudies-literature | 2016 Oct
REPOSITORIES: biostudies-literature
Publications
Optimal Drug Policy in Low-Income Neighborhoods.
Chang Sheng-Wen SW Coulson N Edward NE Wang Ping P
Journal of public economic theory 20160311 5
The control of drug activity currently favors supply-side policies: drug suppliers in the U.S. face a higher arrest rate and longer sentences than demanders. We construct a simple model of drug activity with search and entry frictions in labor and drug markets. Our calibration analysis suggests a strong "dealer replacement effect." As a result, given a variety of community objectives, it is beneficial to lower supplier arrests and raise the demand arrest rate from current values. A 10% shift fro ...[more]
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