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NCJ Number: 165915 Find in a Library
Title: Domestic Geographic Variation in Illicit Drug Prices
Author(s): J P Caulkins
Date Published: 1995
Page Count: 21
Sponsoring Agency: Rand Corporation
Santa Monica, CA 90407-2138
Publication Number: RAND/RP-378
Sale Source: Rand Corporation
1776 Main Street
P.O. Box 2138
Santa Monica, CA 90407-2138
United States of America
Type: Research (Applied/Empirical)
Language: English
Country: United States of America
Annotation: The author hypothesizes that illicit drug prices increase as one moves away from the source of drugs due to poor information flow and that illicit drug prices are negatively related to market size due to economies of scale.
Abstract: To test these hypotheses, data were obtained from a 1991 survey of law enforcement agencies. Respondents were asked for price data about actual drug purchases. Specific variables relating price to market size and distance from source were tested. With two exceptions, data supported the two hypotheses. Cocaine prices in communities surrounding Tier I cities (New York, Newark, Philadelphia, Baltimore, and the District of Columbia) were not significantly higher than prices within those cities. Cocaine prices in Tier II cities (Pittsburgh, Columbus, and Buffalo) were significantly lower than prices in surrounding communities. Marijuana prices were not related to market size. LSD prices were negatively related to community populations. An appendix provides data on the categorization of cities. 27 references and 7 tables
Main Term(s): Drug prices
Index Term(s): Cocaine; District of Columbia; Economic analysis of crime; LSD (acid); Marijuana; Maryland; New York; Ohio; Pennsylvania; State-by-state analyses
Note: DCC. Rand Reprints, reprinted from Journal of Urban Economics, V 37 (1995), P 38-56.
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