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The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon

Ariaster B. Chimeli and Rodrigo Soares ()

American Economic Journal: Applied Economics, 2017, vol. 9, issue 4, 30-57

Abstract: We provide evidence on the effect of market illegality on violence. Brazil was historically the main exporter of mahogany. Starting in the 1990s, trade was restricted and eventually prohibited. We build on previous evidence that mahogany trade persisted after prohibition and document relative increases in violence in areas with natural occurrence of mahogany. We show that as illegal activity receded in the late 2000s so did the relative increase in violence. We describe an experience of increase in violence following the transition of a market from legal to illegal and contribute to the evaluation of prohibition policies under limited enforcement.

JEL-codes: F14 K42 L73 O13 O17 O19 Q23 (search for similar items in EconPapers)
Date: 2017
Note: DOI: 10.1257/app.20160055
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Working Paper: The Use of Violence in Illegal Markets: Evidence from Mahogany Trade in the Brazilian Amazon (2011) Downloads
Working Paper: The use of violence ini llegal markets: evidence from mahogany trade in the Brazilian Amazon (2011) Downloads
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Handle: RePEc:aea:aejapp:v:9:y:2017:i:4:p:30-57