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13:00 - 14:00 2 May 2013
Cocaine Traffic and Violence in Colombia
Ricardo Lecture Theatre |
30 Gordon Street | London | WC1H 0AN | United Kingdom
Jaime Millan, UCL
Various authors have exploit the cropping of coca leaves and the production of cocaine in Colombia seeking for exogenous variations to explain the effects and mechanisms in which conflict could affect economic agents. This paper proposes a new alternative and use the internal cocaine traffic and its reaction to international price shocks in order to get a clearer exogenous variation.
Identification relies on changes of the optimal use of the traffic network as a response of changes in international relative profitability of cocaine markets. In order to achieve the latest, this paper constructs the internal traffic network linking producing municipalities with the national frontier using the network of primary and secondary . Furthermore, interacting that traffic network with international cocaine prices the paper shows the heterogeneity of the different traffickers response depending on which markets they are supplying to.
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