ABSTRACT
This chapter examines the impact of drug control policy on drug use and drug production. A model of rational addiction is introduced to discuss the efficacy of both demand-side and supply-side drug control policies. The concept of elasticity of demand is defined and applied to the demand for various drugs. The relationship between drugs and violence are examined through three channels—psychopharmacological, economic compulsive, and systemic. Empirical evidence is presented that attempts to distinguish between these channels. A discussion of the costs and benefits of drug legalization is presented. The chapter concludes with a brief case study of drug control policy directed at methamphetamine, a commonly used and highly dangerous drug.
