illegal producers. We use illegal drugs as a prominent example. We show that the more inelastic either demand for or supply of … the social and private values of consumption, but also on this elasticity. When demand and supply are no so elastic, it …

. We show that illicit drug production, the price elasticity of demand for a drug, the addictive nature of a drug, the … contrasted with decriminalization and legalization, and where legalization yields a higher welfare than prohibition we show that …

, the paper contributes an analytic derivation of the tax elasticity of taxable income, the welfare cost of the tax, and … government revenue as a percent of output. It shows how an increase in the tax rate causes the tax elasticity and welfare cost to … the tax elasticity of reporting income. Examples are provided with less and more productive economies in terms of the tax …

, the paper contributes an analytic derivation of the tax elasticity of taxable income, the welfare cost of the tax, and … government revenue as a percent of output. It shows how an increase in the tax rate causes the tax elasticity and welfare cost to … the tax elasticity of reporting income. Examples are provided with less and more productive economies in terms of the tax …

. Extrapolating from our results, this indicates that decriminalization of the production and distribution of drugs may lead to a drop … cocaine seized, while it increases the price of cocaine. Our results are consistent with the theory that decriminalization of …