Drugs on the Web, Crime in the Streets - The Impact of Dark Web Marketplaces on Street Crime
No 202025, Working Papers from School of Economics, University College Dublin
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.
Keywords: Dark web; Darknet markets; Drugs; Crime (search for similar items in EconPapers)
JEL-codes: K24 K42 L13 (search for similar items in EconPapers)
Pages: 45 pages
New Economics Papers: this item is included in nep-law and nep-pay
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://hdl.handle.net/10197/11645 First version, 2020 (application/pdf)
Working Paper: Drugs on the Web, Crime in the Streets. The impact of Dark Web marketplaces on street crime (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:202025
Access Statistics for this paper
More papers in Working Papers from School of Economics, University College Dublin Contact information at EDIRC.
Bibliographic data for series maintained by Nicolas Clifton ().