An Economic Analysis of a Drug-selling Gang's Finances


Book Description

We analyze a unique data set detailing the financial activities of a drug-selling street gang on a monthly basis over a four-year period in the recent past. The data, originally compiled by the gang leader to aid in managing the organization, contain detailed information on both the sources of revenues (e.g. drug sales, extortion) and expenditrues (e.g. costs of drugs sold, weapons, tribute to the central gang organization, wages paid to various levels of the gang). Street-level drug dealing appears to be less lucrative than is generally though. We estimate the average wage in the organization to rise from roughly $6 per hour to $11 per hour over the time period studied. The distribution of wages, however, is extremely skewed. Gang leaders earn far more than they could in the legitimate sector, but the actual street-level dealers appear to earn less than the minimum wage throughout most of our sample, in spite of the substantial risks associated with such activities (the annual violent death rate in our sample is 0.07), There is some evidence consistent both with compensating differentials and efficiency wages. The markup on drugs suggests that the gang has substantial local market power. Gang wars appear to have an important strategic component: violence on another gang's turf shifts demand away from that area. The gang we observe responds to such attacks by pricing below marginal cost, suggesting either economic punishment for the rival gang or the presence of switching for users that makes market share maintenance valuable. We investigate a range of alternative methods for estimating the willingness of gang members to accept risks of death, all of which suggest that the implicit value that gang members place on their own lives is very low.




An Economic Analysis of the Financial Records of al-Qa'ida in Iraq


Book Description

This monograph analyzes the finances of the militant group al-Qa'ida in Iraq in Anbar province during 2005 and 2006, at the peak of the group's power and influence. The authors draw on captured financial documents that give details on the daily financial transactions of one specific sector within Anbar province and of the financial transactions of the AQI provincial administration.




Money from Crime


Book Description




Narconomics


Book Description

Picking his way through Andean cocaine fields, Central American prisons, Colorado pot shops, and the online drug dens of the Dark Web, Tom Wainwright provides a fresh, innovative look into the drug trade and its 250 million customers. More than just an investigation of how drug cartels do business, Narconomics is also a blueprint for how to defeat them. How does a budding cartel boss succeed (and survive) in the 300 billion illegal drug business? By learning from the best, of course. From creating brand value to fine-tuning customer service, the folks running cartels have been attentive students of the strategy and tactics used by corporations such as Walmart, McDonald's, and Coca-Cola. And what can government learn to combat this scourge? By analyzing the cartels as companies, law enforcers might better understand how they work -- and stop throwing away 100 billion a year in a futile effort to win the "war" against this global, highly organized business. Your intrepid guide to the most exotic and brutal industry on earth is Tom Wainwright. Picking his way through Andean cocaine fields, Central American prisons, Colorado pot shops, and the online drug dens of the Dark Web, Wainwright provides a fresh, innovative look into the drug trade and its 250 million customers. The cast of characters includes "Bin Laden," the Bolivian coca guide; Old Lin," the Salvadoran gang leader; "Starboy," the millionaire New Zealand pill maker; and a cozy Mexican grandmother who cooks blueberry pancakes while plotting murder. Along with presidents, cops, and teenage hitmen, they explain such matters as the business purpose for head-to-toe tattoos, how gangs decide whether to compete or collude, and why cartels care a surprising amount about corporate social responsibility. More than just an investigation of how drug cartels do business, Narconomics is also a blueprint for how to defeat them.




Understanding Drug Selling in Communities


Book Description

How do local drug markets impact on their 'host' communities? This report, based on the largest British study of drug-dealing to date, draws on work in three areas where drug dealing is prevalent, and assesses the the financial, social, environmental and cultural impact of local drug markets on the communities in which they operate. It documents the views of community members about the market and its impact, whilst exploring the career paths and motivations that lead people into drug dealing, together with the social and demographic differences between dealers, users and others in the community. The authors consider the extent to which drug dealers are predatory outsiders who 'prey on' the local community, suggesting that local drug markets are often integrated - to greater or lesser extent - in the licit and illicit economies of deprived areas. Understanding drug selling in communities highlights the complex nature of drug dealing and its effect on local communities. It outlines a range of possible enforcement measures and will be of interest to a range of practitioners concerned with communities, drug prevention and rehabilitation as well as local authorities, the police and probation service.




Gangs, Drugs and (Dis)Organised Crime


Book Description

Drawing upon unique empirical data based on interviews with high-profile ex-offenders and experts, this book sheds new light on drug markets and gangs in the UK. The study shows how traditional methods of tackling gang violence fail to address the intertwined nature of those criminal activities which can overlap with other organised crime spheres. McLean sparks new debate on the subject, offering solutions and alternatives.




Understanding the Demand for Illegal Drugs


Book Description

Despite efforts to reduce drug consumption in the United States over the past 35 years, drugs are just as cheap and available as they have ever been. Cocaine, heroin, and methamphetamines continue to cause great harm in the country, particularly in minority communities in the major cities. Marijuana use remains a part of adolescent development for about half of the country's young people, although there is controversy about the extent of its harm. Given the persistence of drug demand in the face of lengthy and expensive efforts to control the markets, the National Institute of Justice asked the National Research Council to undertake a study of current research on the demand for drugs in order to help better focus national efforts to reduce that demand. This study complements the 2003 book, Informing America's Policy on Illegal Drugs by giving more attention to the sources of demand and assessing the potential of demand-side interventions to make a substantial difference to the nation's drug problems. Understanding the Demand for Illegal Drugs therefore focuses tightly on demand models in the field of economics and evaluates the data needs for advancing this relatively undeveloped area of investigation.




Illicit Trade and the Global Economy


Book Description

Economists explore the relationship between expanding international trade and the parallel growth in illicit trade, including illegal drugs, smuggling, and organized crime. As international trade has expanded dramatically in the postwar period--an expansion accelerated by the opening of China, Russia, India, and Eastern Europe--illicit international trade has grown in tandem with it. This volume uses the economist's toolkit to examine the economic, political, and social problems resulting from such illicit activities as illegal drug trade, smuggling, and organized crime. The contributors consider several aspects of the illegal drug market, including the sometimes puzzling relationships among purity, price, and risk; the effect of globalization on the heroin and cocaine markets, examined both through mathematical models and with empirical data from the U.K; the spread of khat, a psychoactive drug imported legally to the U.K. as a vegetable; and the economic effect of the "war on drugs" on producer and consumer countries. Other chapters examine the hidden financial flows of organized crime, patterns of smuggling in international trade, Iran's illicit trading activity, and the impact of mafia-like crime on foreign direct investment in Italy.




Handbook of Law and Economics


Book Description

Law can be viewed as a body of rules and legal sanctions that channel behavior in socially desirable directions — for example, by encouraging individuals to take proper precautions to prevent accidents or by discouraging competitors from colluding to raise prices. The incentives created by the legal system are thus a natural subject of study by economists. Moreover, given the importance of law to the welfare of societies, the economic analysis of law merits prominent treatment as a subdiscipline of economics. Our hope is that this two volume Handbook will foster the study of the legal system by economists.*The two volumes form a comprehensive and accessible survey of the current state of the field.*Chapters prepared by leading specialists of the area.*Summarizes received results as well as new developments.




The Oxford Handbook of Gangs and Society


Book Description

"The Oxford Handbook of Gangs and Society is the premier reference book on gangs for practitioners, policymakers, students, and scholars. This carefully curated volume contains 43 chapters written by the leading experts in the field, who advance a central theme of "looking back, moving forward" by providing state-of-the-art reviews of the literature they created, shaped, and (re)defined. This international, interdisciplinary collective of authors provides readers with a rare tour of the field in its entirety, expertly navigating thorny debates and the at-times contentious history of gang research, while simultaneously synthesizing flourishing areas of study that advance the field into the 21st century. The volume is divided into six cohesive sections that reflect the diverse field of gang studies and capture the large-scale cultural, economic, political, and social changes occurring within the world of gangs in the last century; anticipating immense changes on the horizon. From definitions to history to theory to epistemology to technology to policy and practice, this unprecedented volume captures the most timely and important topics in the field. When readers finish this book, they will be more confident in what we know and do not know about gangs in our society"--