THE PRICE OF COCAINE AND THE COLOMBIAN PESO: AN EMPIRICAL INVESTIGATION

IF 1 Q3 ECONOMICS

Global Economy Journal Pub Date : 2019-12-06 DOI:10.1142/s2194565919500155

Alexi Thompson, Yaya Sissoko

引用次数: 0

Abstract

While the underground economy is not explicitly included in the measure of (GDP), the cocaine trade has been a major source of revenue for Colombia. Using quarterly cocaine prices from 1982 to 2007 published by the Office of National Drug Control Policy, this paper uses vector error correction and forecast error variance decomposition methods to look at the relationship between cocaine prices and the peso/$ nominal exchange rate. Our results indicate cocaine prices affect the value of the Colombian peso, which leads to some interesting policy implications.

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可卡因价格与哥伦比亚比索:一项实证调查

虽然地下经济并未明确包括在国内生产总值的衡量中，但可卡因贸易一直是哥伦比亚的主要收入来源。本文利用国家药物管制政策办公室公布的1982 - 2007年季度可卡因价格数据，采用向量误差修正和预测误差方差分解方法来研究可卡因价格与比索/美元名义汇率之间的关系。我们的研究结果表明，可卡因价格影响哥伦比亚比索的价值，这导致了一些有趣的政策暗示。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Global Economy Journal ECONOMICS-

CiteScore

1.60

自引率

14.30%

发文量

期刊介绍： The GEJ seeks to publish original and innovative research, as well as novel analysis, relating to the global economy. While its main emphasis is economic, the GEJ is a multi-disciplinary journal. The GEJ''s contents mirror the diverse interests and approaches of scholars involved with the international dimensions of business, economics, finance, history, law, marketing, management, political science, and related areas. The GEJ also welcomes scholarly contributions from officials with government agencies, international agencies, and non-governmental organizations. One over-arching theme that unites IT&FA members and gives focus to this journal is the complex globalization process, involving flows of goods and services, money, people, and information.