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Drugs on the Web, Crime in the Streets - The Impact of Dark Web Marketplaces on Street Crime
File(s)
File | Description | Size | Format | |
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WP20_25.pdf | 1013.91 KB |
Author(s)
Date Issued
September 2020
Date Available
30T11:39:05Z October 2020
Abstract
The Dark Web has changed the way drugs are traded globally by shifting trade away from the streets and onto the web. In this paper, I study whether the Dark Web has an impact on street crime, a common side effect of traditional drug trade. To identify a causal effect, I use daily data from the US and exploit unexpected shutdowns of large online drug trading platforms. In a regression discontinuity design, I compare crime rates in days after the shutdowns to those immediately preceding them. I find that shutting down Dark Web markets leads to a significant increase in drug trade in the streets. However, the effect is short-lived. In the days immediately following shutdowns, drug-related crimes increase by five to almost ten percent but revert to pre-shutdown levels within ten days. I find no impact of shutdowns of Dark Web marketplaces on thefts, assaults, homicides and prostitution.
Type of Material
Working Paper
Publisher
University College Dublin. School of Economics
Start Page
1
End Page
45
Series
UCD Centre for Economic Research Working Paper Series
WP2020/25
Copyright (Published Version)
2020 the Author
Classification
K42
K24
L13
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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