Rethinking America's Illegal Drug Policy
NBER WORKING PAPER SERIES RETHINKING AMERICA'S ILLEGAL DRUG POLICY John J. Donohue III Benjamin Ewing David Peloquin Working Paper 16776 http://www.nber.org/papers/w16776 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 February 2011 The authors wish to thank Jonathan Caulkins, Phil Cook, Louis Kaplow, Rob MacCoun, Jeffrey Miron, Peter Reuter, and participants at two NBER conferences and the Harvard Law School Law and Economics workshop for valuable comments. We are also particularly grateful to Jeffrey Miron and Angela Dills for sharing their national time series data on drug prohibition enforcement and crime. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. © 2011 by John J. Donohue III, Benjamin Ewing, and David Peloquin. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Rethinking America's Illegal Drug Policy John J. Donohue III, Benjamin Ewing, and David Peloquin NBER Working Paper No. 16776 February 2011, Revised March 2011 JEL No. K0 ABSTRACT This paper provides a critical review of the empirical and theoretical literatures on illegal drug policy, including cross-country comparisons, in order to evaluate three drug policy regimes: criminalization, legalization and “depenalization.” Drawing on the experiences of various states, as well as countries such as Portugal and the Netherlands, the paper attempts to identify cost-minimizing policies for marijuana and cocaine by assessing the differing ways in which the various drug regimes would likely change the magnitude and composition of the social costs of each drug.
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