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Oct 23, 2017 · The few areas where cartels managed to work free of drug-related killings failed to see a change in poverty or unemployment, contradicting anecdotal storytelling of cartels benefiting local economies.
- Roxana Gutierrez-Romero, Mónica Oviedo
- 2017
Jan 1, 2024 · We also estimate the broad impact of cartels on poverty, inequality, unemployment and migration within the country using population censuses. We focus on assessing the impact on municipalities that experienced cartels or drug-related homicides for the first time in 2006 or afterward.
Gain a better understanding of the types, characteristics and functioning of the cartels affecting developing countries as a prerequisite to measure their impact on economic development. Measure the impact of cartels on economic development by using econometric methodology.
- SUMMARY OF POLICY IMPLICATIONS
- Appendix IV- Estimation of cartel’s economic harm: methodology
- + ∑ exp( d
- cartel
Competition authorities in developing countries could benefit from the results of the research in several ways. Firstly, current research brings more comprehensive data on price overcharges. Significant country-specific aggregated cartels’ excess revenues calculated on its basis and related to the GDP provide a support for the competition authority...
Here we present in more details the original methodology that aims at estimating the price overcharge as a measure of an economic harm caused by a ‘hard-core’ cartel that we employ in our research. As ‘by-products’ it also allows estimating losses in the output and in the consumers’ welfare. It is based on a simple and intuitive model and requires ...
- a p ) = 1 where s is a market share of the firm j and is the share of the outside option. 0 Note, that since the size of the market is fixed to N (number of consumers), then market shares can be easily interpreted in terms of sold quantities and vice versa. In such a differentiated-products framework, profit of each firm j on the market is define...
) = Welfare losses j = j = 1 ln J (10) exp ∑ ( = 1 d - a c p ) j j Described above procedure shows that just having information on prices, market shares and sales of colluding companies at least for one period of cartel existence, one is able to estimate the economic harm caused by cartelization. It is based on ...
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Dec 1, 2020 · The researchers estimate the impact of gangs on socioeconomic development in two ways. First, they use the boundaries of gang-controlled neighborhoods in El Salvador’s capital, San Salvador, to compare economic outcomes inside and outside these neighborhoods.
Feb 7, 2018 · Some stories say that local economies benefit from cartels in Mexico. But research suggests that the areas most plagued by drug-related violence have seriously suffered economically. Mexico is facing one of the most violent episodes in its recent history.
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Jan 26, 2011 · Since the scale of the human tragedy has already been well-examined, this article focuses instead on the source of increasing drug-related violence in Mexico; its economic impact, including direct and indirect costs; and the response of the global business community.
