Drugs on the Web, Crime in the Streets - The Impact of Dark Web Marketplaces on Street Crime

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Title: Drugs on the Web, Crime in the Streets - The Impact of Dark Web Marketplaces on Street Crime
Authors: Zambiasi, Diego
Permanent link: http://hdl.handle.net/10197/11645
Date: Sep-2020
Online since: 2020-10-30T11:39:05Z
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/Report no.: UCD Centre for Economic Research Working Paper Series; WP2020/25
Copyright (published version): 2020 the Author
Keywords: Dark webDarknet marketsDrugsCrime
metadata.dc.subject.classification: K42; K24; L13
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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