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The Role of Information in Drug Markets: Effects of Alert and Control Policies on Illegal Consumption and Supply in the Netherlands

Economía Aplicada

Doctorando: Guillermo Martínez Martínez

Más información

Centro de investigación o Institución: Centro de Estudios Monetarios y Financieros (CEMFI)

Director/es de Tesis:

Guillermo Martínez Martínez

Sinopsis

This doctoral research aims to evaluate how the availability and dissemination of information affect illegal drug markets, focusing on a set of policies implemented in the Netherlands. Specifi cally, it examines the impact of drug analysis laboratories and a national alert system on the behavior of consumers and producers. The project aspires to advance understanding of illegal markets, offering data-driven insights for policy development in a socially signifi cant area relevant not only to the Netherlands but also to other countries.

Key data sources include the Dutch Drug Information and Monitoring System (DIMS) and administrative microdata from the Dutch Central Bureau of Statistics (CBS). The unique confi guration of Dutch drug policies allows consumers to have small amounts of drugs tested without legal consequences, enhancing safety and providing authorities with critical black market data. DIMS plays a central role, enabling the Ministry of Health to issue alerts when dangerous substances are detected, thereby increasing transparency and knowledge in a typically opaque market. These informational interventions provide an opportunity to study market responses to shifts in consumer knowledge. 

The project also investigates the broader implications of these policies, particularly their effects on health and labor market outcomes. By combining insights from DIMS and administrative data, the research will explore the economic and individual determinants of drug use, offering a quantitative perspective. It aims to assess how access to reliable information can infl uence consumption patterns and mitigate the negative impacts of illegal drug use and sales. 

Ultimately, the fi ndings will provide valuable insights for policymakers seeking to address the social and health challenges associated with drug use. This research has the potential to shape regulatory measures and contribute to the ongoing debate on the management of prohibited substances, while shedding light on the broader functioning of illegal markets.

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