The Use Of Violence In Illegal Markets: Evidence From Mahogany Trade In The Brazilian Amazon

Agents operating in illegal markets cannot resort to the justice system to guarantee property rights, to enforce contracts, or to seek protection from competitors' improper behaviors. In these contexts, violence is used to enforce previous agreements and to fight for market share. This relationship plays a major role in the debate on the pernicious effects of the illegality of drug trade. This paper explores a singular episode of transition of a market from legal to illegal to provide a first piece of evidence on the causal effect of illegality on systemic violence. Brazil has historically been the main world producer of big leaf mahogany (a tropical wood).

Provided by: Institute for the Study of Labor Topic: Big Data Date Added: Aug 2011 Format: PDF

Download Now

Find By Topic