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

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.

Seasonal Fluctuations and the Life Cycle-Permanent Income Model of Consumption

Recent empirical work has found that both aggregate and micro data reject the rational expectations version of the Life Cycle-Permanent Income model of consumption. This paper examines a new possible explanation for the rejections: the treatment of seasonal fluctuations. There are substantial seasonal fluctuations in consumption purchases, but no previous paper has determined whether these fluctuations are consistent with the Life Cycle-Permanent Income model. The results in this paper show that when the seasonal fluctuations in consumption purchases are included in an analysis of the Life Cycle-Permanent Income model there is no evidence in the aggregate data against the model. The estimates of the parameters of agents' utility functions obtained here are plausible, and the data do not reject the overidentifying restrictions on the model.

The Opium Wars, Opium Legalization, and Opium Consumption in China

The effect of drug prohibition on drug consumption is a critical issue in debates over drug policy. One episode that provides information on the consumption-reducing effect of drug prohibition is the Chinese legalization of opium in 1858. In this paper we examine the impact of China's opium legalization on the quantity and price of British opium exports from India to China during the 19th century. We find little evidence that legalization increased exports or decreased price. Thus, the evidence suggests China's opium prohibition had a minimal impact on opium consumpton.

Does the Minimum Legal Drinking Age Save Lives?

The minimum legal drinking age (MLDA) is widely believed to save lives by reducing traffic fatalities among underage drivers. Further, the Federal Uniform Drinking Age Act, which pressured all states to adopt an MLDA of 21, is regarded as having contributed enormously to this life saving effect. This paper challenges both claims. State-level panel data for the past 30 years show that any nationwide impact of the MLDA is driven by states that increased their MLDA prior to any inducement from the federal government. Even in early adopting states, the impact of the MLDA did not persist much past the year of adoption. The MLDA appears to have only a minor impact on teen drinking.

The Changing Behavior of the Term Structure of Interest Rates

We reexamine the expectations theory of the term structure using data at the short end of the maturity spectrum. We find that prior to the founding ofthe Federal Reserve System in 1915, the spread between long rates and short rates has substantial predictive power for the path of interest rates; after 1915, however, the spread contains much less predictive power. We then show that the short rate is approximately a random walk after the founding of the Fed but not before. This latter fact, coupled with even slight variation inthe term premium, can explain the observed change in 1915 in the performance of the expectations theory. We suggest that the random walk character of the short rate may be attributable to the Federal Reserve's commitment to stabilizing interest rates.

Le coût de la justice internationale : enquête sur les aspects financiers du contentieux interétatique

Despite its obvious practical interest, there is virtually no study concerning the costs of inter-State proceedings. The present article is intended to fill this gap. The information is difficult to access; still, parliamentary archives, press articles and private conversations offer reliable data about the overall costs of some cases, as well as a breakdown by categories of costs and expenses. One may notice great disparity in the overall figures of some recent judicial and arbitral proceedings and no objective consideration can account for. Indeed, this does not seem due either to the choice of forum, or to the complexity of the case, or to the length of proceedings. On the contrary, States themselves are masters of the budget of a case, which may remain within a reasonable fork, provided that the case is managed with professionalism

Phenomenology of chiral damping in noncentrosymmetric magnets

A phenomenology of magnetic chiral damping is proposed in the context of magnetic materials lacking inversion symmetry breaking. We show that the magnetic damping tensor adopts a general form that accounts for a component linear in magnetization gradient in the form of Lifshitz invariants. We propose different microscopic mechanisms that can produce such a damping in ferromagnetic metals, among which spin pumping in the presence of anomalous Hall effect and an effective "$s$-$d$" Dzyaloshinskii-Moriya antisymmetric exchange. The implication of this chiral damping in terms of domain wall motion is investigated in the flow and creep regimes. These predictions have major importance in the context of field- and current-driven texture motion in noncentrosymmetric (ferro-, ferri-, antiferro-)magnets, not limited to metals.Comment: 5 pages, 2 figure

The Opium Wars, Opium Legalization, and Opium Consumption in China

The effect of drug prohibition on drug consumption is a critical issue in debates over drug policy. One episode that provides information on the consumption-reducing effect of drug prohibition is the Chinese legalization of opium in 1858. In this paper we examine the impact of China's opium legalization on the quantity and price of British opium exports from India to China during the 19th century. We find little evidence that legalization increased exports or decreased price. Thus, the evidence suggests China's opium prohibition had a minimal impact on opium consumption.

Government Policy Toward Illegal Drugs: An Economist's Perspective

This paper explains how economists think about government policy toward illegal drugs. The economics perspective suggests that rational discussion of drug policy must address two distinct questions. The first is whether policy should attempt to reduce drug use; the second is whether prohibition is a good method of reducing drug use, should that goal be desirable. Economic reasoning suggests that reducing drug use is not necessarily a compelling goal for policy, although it does not rule out that perspective. Economic reasoning also suggests that prohibition is an inefficient method for reducing drug use – assuming that goal is taken as given – except under conditions that do not appear consistent with existing evidence.Economic