Template-Type: ReDIF-Paper 1.0
Author-Name: Abbate Nicolás
Author-Name-First: Nicolás
Author-Name-Last: Abbate
Author-Name: Cabral Juan Andrés 
Author-Name-First: Cabral
Author-Name-Last: Juan Andrés
Title: Reassessing a cocaine shock: a contrary narrative from Rabo de Peixe
Abstract: This work seeks to analyze the effects of an exogenous increase shock in the supply of cocaine using São Miguel Island, Portugal as a case study. Located in the Azores archipelago, the island is politically organized as an autonomous region. In January 2001, half a ton of cocaine unexpectedly washed ashore on Rabo de Peixe, São Miguel, leading to media reports of various alterations on the island, such as a surge in drug dealers and a significant reduction in the drug's price. These events even formed the basis for a documentary and a Netflix series. However, my comprehensive analysis utilizing a Synthetic Control approach paints a contrasting picture. I aimed to examine the short and medium-term repercussions of the increased accessibility of cocaine on São Miguel's crime rates, unemployment, and deaths. Contrary to the narrative constructed by the media and popular culture, I found no significant effects on these outcomes. This study challenges existing media narratives and provides a robust, data-driven insight into the actual impact of this incident on São Miguel.
Length:  19 pages
Creation-Date:  2023-11
File-URL: https://aaep.org.ar/works/works2023/4628.pdf
File-Format: Application/pdf
Number: 4628
Classification-JEL: I11, I3
Handle: RePEc:aep:anales:4628