36 Pages Posted: 10 Aug 2015 Last revised: 16 May 2016
Date Written: August 1, 2015
Title II, the Controlled Substances Act (CSA), of the Comprehensive Drug Abuse Prevention and Control Act of 1970 created the system of drug scheduling and regulation used to this day. This paper illustrates how the CSA created the incentives for induced ‘malnovation’ (innovation intended to circumvent legislation, and thus foil policymakers’ intended ends) into drug markets, namely “designer drugs.” As a result of this induced malnovation, drug markets have not only increased in variance of products available that are often sold under similar street names, but there is a tendency towards creating more dangerous drugs in an attempt to stay outside of the regulation.
Keywords: induced malnovation, Comprehensive Drug Abuse Prevention and Control Act of 1970, Controlled Substances Act, designer drugs
JEL Classification: K42, L51, O31
Suggested Citation: Suggested Citation
Redford, Audrey, Don't Eat the Brown Acid: Induced ‘Malnovation’ in Drug Markets (August 1, 2015). Review of Austrian Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2641731 or http://dx.doi.org/10.2139/ssrn.2641731