Doyle, Chris; Smith, Jennifer C - Department of Economics, University of Warwick - 1997
We present a model which ties together rational drug consumption, taxation, crime and other drug-related externalities … prohibited, legalized or decriminalized. In all regimes illicit production of a drug may take place and drug-related crime occurs … this can be associated with greater drug-related crime and more drug addiction. The model is discussed in the context of US …