Drugs on the Web, Crime in the Streets - The Impact of Dark Web Marketplaces on Street Crime
|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 web; Darknet markets; Drugs; Crime||metadata.dc.subject.classification:||K42; K24; L13||Language:||en||Status of Item:||Not peer reviewed|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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