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


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.



Canavire-Bacarreza, G., Lundberg, A. 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, pp. 287-314.

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