Modelling the Cocaine and Heroin Markets in the Era of Globalization and Drug Reduction Policies. Paper presented at the CESifo Venice summer institute

Over the last twenty years, the use of cocaine and heroin in the world has continued to increase. According to UNODC (2007), between 1992 and 2005, world consumption of these drugs rose by about 3.2%. These growth rates were 7.3 % and 3.4 % in Europ