American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
Trafficking Networks and the Mexican Drug War
American Economic Review
(pp. 1738–79)
Abstract
Drug trade-related violence has escalated dramatically in Mexico since 2007, and recent years have also witnessed large-scale efforts to combat trafficking, spearheaded by Mexico's conservative PAN party. This study examines the direct and spillover effects of Mexican policy toward the drug trade. Regression discontinuity estimates show that drug-related violence increases substantially after close elections of PAN mayors. Empirical evidence suggests that the violence reflects rival traffickers' attempts to usurp territories after crackdowns have weakened incumbent criminals. Moreover, the study uses a network model of trafficking routes to show that PAN victories divert drug traffic, increasing violence along alternative drug routes. (JEL D72, D85, K42, O17, Z13)Citation
Dell, Melissa. 2015. "Trafficking Networks and the Mexican Drug War." American Economic Review 105 (6): 1738–79. DOI: 10.1257/aer.20121637Additional Materials
JEL Classification
- D72 Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- D85 Network Formation and Analysis: Theory
- K42 Illegal Behavior and the Enforcement of Law
- O17 Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
- Z13 Economic Sociology; Economic Anthropology; Social and Economic Stratification