Statiticians - Do Supply-Side Drug Policies Reduce Cocaine Use? Evidence from the United States (1998–2023)

Description

Raw results of various statistical analyses conducted on variables related to cocaine supply and demand in the United States and Latin America between 1998 and 2023.

Steps to reproduce

The variables used in the Pearson correlation analysis and in the multiple linear regression were: cocaine consumption in the United States, the price per gram of cocaine in the United States, the amount of cocaine available on international markets, and the year. To reduce potential heteroscedasticity issues and facilitate the interpretation of coefficients in terms of elasticities, all quantitative variables were transformed into natural logarithms (LN). The inclusion of the variable cocaine available on international markets addresses the difficulty of precisely quantifying the exact volume of cocaine entering the U.S. market specifically. However, given that the United States is the world’s primary cocaine market, it is reasonable to assume that a substantial proportion of the cocaine available internationally is destined for that country. Likewise, the inclusion of the year variable allows us to capture potential time trends in consumption patterns, as well as to control for unobservable structural effects and their evolution over the analyzed period. Similarly, it helps avoid spurious correlations arising from common growth patterns. Finally, the model estimated using multiple linear regression is as follows: Ln(Consumpti〖on〗_t )= β_0+β_1 ln⁡(Price_t )+β_2 ln⁡(Availabilty_t )+β_3 Ye〖ar〗_t+ε_t Where ε_t represents the random error term, which accounts for unobserved factors that may influence cocaine use in period t.

Institutions

• Universidad de Murcia

  Murcia, Murcia

Categories

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