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Survey Evidence on Black Market Liquor in Colombia

aInter-American Development Bank, USA
bDepartment of Economics, West Virginia University, USA
cSchool of Economics and Finance, Universidad EAFIT, Colombia

The Econometrics of Complex Survey Data

ISBN: 978-1-78756-726-9, eISBN: 978-1-78756-725-2

ISSN: 0731-9053

Publication date: 10 April 2019

Abstract

In 2014, the Colombian Government commissioned a unique national survey on illegal liquor. Interviewers purchased bottles of liquor from interviewees and tested them for authenticity in a laboratory. Two factors predict whether liquor is contraband (smuggled): (1) the absence of a receipt and (2) the presence of a discount offered by the seller. Neither factor predicts whether a bottle is adulterated. The results back a story in which sellers are complicit with a contraband economy, but whether buyers are complicit remains unclear. However, buyers are more likely to receive adulterated liquor when specifically asking for a discount.

Keywords

Acknowledgements

Acknowledgments

We thank two anonymous referees and participants of the 2017 Econometrics of Complex Survey Design workshop at the Bank of Canada for their helpful comments. We also thank Jacques-Emmanuel Galimard for sharing R code on a multiple imputation procedure. Finally, we thank Universidad EAFIT and the FND – Federación Nacional de Departamentos – for allowing us to use the data. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Inter-American Development Bank, its Board of Directors, or the countries they represent.

Citation

Canavire-Bacarreza, G.J., Lundberg, A.L. and Montoya-Agudelo, A. (2019), "Survey Evidence on Black Market Liquor in Colombia", The Econometrics of Complex Survey Data (Advances in Econometrics, Vol. 39), Emerald Publishing Limited, Bingley, pp. 287-314. https://doi.org/10.1108/S0731-905320190000039016

Publisher

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Emerald Publishing Limited

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