Law Enforcement, the Price of Cocaine and Cocaine Use

by John DiNardo

In this paper the author investigates the relationship between law enforcement and the price and use of cocaine. He merges data from the Drug Enforcement Administration's (DEA) STRIDE (System to Retrieve Information from Drug Evidence) and MTF (Monitoring the Future). In particular, the author applies a variety of grouped data estimators and relates these estimators to instrumental variables techniques, quasi-experiments, and classical experimental designs. The author finds no evidence that regional and time variation in DEA seizures of cocaine is helpful in explaining variation in either the demand or price of cocaine.

This report is part of the RAND Corporation reprint series. The Reprint was a product of the RAND Corporation from 1992 to 2011 that represented previously published journal articles, book chapters, and reports with the permission of the publisher. RAND reprints were formally reviewed in accordance with the publisher's editorial policy and compliant with RAND's rigorous quality assurance standards for quality and objectivity. For select current RAND journal articles, see External Publications.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.