Citation

Miron JA. Rev. Econ. Stat. 2003; 85(3): 522-530.

Copyright

(Copyright © 2003, Department of Economics, Harvard University, Publisher MIT Press)

DOI

10.1162/003465303322369696

PMID

unavailable

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.