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Definition
A prohibition is a government decree against the production and exchange of a good or service. Recent studies on prohibitions, for a variety of goods and services, such as drugs, alcohol, and prostitution, suggest that prohibitions impose heavy costs and are extremely difficult to enforce.
Prohibition
Governments throughout history have utilized prohibitions on a multitude of goods and services throughout history for a variety of reasons, such as attempts to protect domestic producers from foreign trade, protect consumers, regulate morality, etc. Thus, a prohibition is a means to achieving a broader social end.
In theory, the economics of prohibition is simple. Ultimately, prohibition is a supply reduction legislation designed to curtail the production, exchange, and consumption of a good through the use of penalties, such as fines, confiscation of assets, and even jail sentences. Prohibitions attempt to reduce...
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References
Cowan R (1986) How the narcs created crack: a war against ourselves. Natl Rev 38(23):26–34
Friedman M (1975) An economist’s protest. Thomas Horton and Daughters, Glen Ridge
Further Reading
Becker GS, Murphy KM, Grossman M (2006) The market for illegal goods: the case of drugs. J Polit Econ 114(1):38–60
Boettke PJ, Coyne CJ, Hall AR (2013) Keep off the grass: the economics of prohibition and U.S. Drug Policy. Oregon Law Rev 17(4):1069–1095
Miron JA (2004) Drug war crimes: the consequences of prohibition. Independent Institute, Oakland
Thornton M (1991) The economics of prohibition. University of Utah Press, Salt Lake City
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Snow, N.A. (2021). Prohibition. In: Marciano, A., Ramello, G.B. (eds) Encyclopedia of Law and Economics. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-7883-6_625-2
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DOI: https://doi.org/10.1007/978-1-4614-7883-6_625-2
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Chapter history
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Latest
Prohibition- Published:
- 19 August 2021
DOI: https://doi.org/10.1007/978-1-4614-7883-6_625-2
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Original
Prohibition- Published:
- 22 August 2017
DOI: https://doi.org/10.1007/978-1-4614-7883-6_625-1