The Effect of Drug Prohibition on Drug Prices: Evidence from the Markets for Cocaine and Heroin

45 Pages Posted: 16 May 2003 Last revised: 1 Nov 2010

See all articles by Jeffrey A. Miron

Jeffrey A. Miron

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: May 2003

Abstract

This paper examines the effect of drug prohibition on the black market prices of cocaine and heroin. The paper examines the ratio of retail to farmgate price for cocaine, heroin, and several legal goods, and it compares legal versus black market prices for cocaine and heroin. The results suggest that cocaine and heroin are substantially more expensive than they would be in a legalized market, but to a lesser degree than suggested in previous research.

Suggested Citation

Miron, Jeffrey A., The Effect of Drug Prohibition on Drug Prices: Evidence from the Markets for Cocaine and Heroin (May 2003). NBER Working Paper No. w9689. Available at SSRN: https://ssrn.com/abstract=406061

Jeffrey A. Miron (Contact Author)

Harvard University - Department of Economics ( email )

Littauer Center
Cambridge, MA 02138
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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