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Drugs on the Web, Crime in the Streets. The impact of Dark Web Marketplaces on Street Crime.

Lookup NU author(s): Dr Diego Zambiasi

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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.

Publication metadata

Author(s): Zambiasi D

Publication type: Working Paper

Publication status: Published

Journal: UCD Geary Institute for Public Policy Discussion Paper Series

Year: 2020

Publisher: UCD Geary Institute For Public Policy

URL: https://ideas.repec.org/p/ucd/wpaper/202009.html

Notes: https://researchrepository.ucd.ie/handle/10197/11645

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