title: Drug decriminalization and the price of illicit drugs.
abstract: This study is an empirical assessment of the impact of the drug decriminalization policy followed by Portugal in July 2001, on the price of illicit drugs.
  
  
  
  The analysis is performed using a difference-in-differences approach and the Synthetic Control Method in order to construct a synthetic control unit from a convex combination of countries.
  
  
  
  The results suggest that the prices of opiates and cocaine in the post-treatment period did not decrease in the sequence of the policy change.
  
  
  
  We conclude that the drug decriminalization policy seems to have caused no harm through lower illicit drugs prices, which would lead to higher drug usage and dependence.
authors.affiliation: Nova School of Business and Economics, Universidade Nova de Lisboa, Campus de Campolide, 1099-032 Lisbon, Portugal; Banco de Portugal, Portugal.
authors.forename: Sónia
authors.initials: S
authors.lastname: Félix
authors.affiliation: Nova School of Business and Economics, Universidade Nova de Lisboa, Campus de Campolide, 1099-032 Lisbon, Portugal; Banco de Portugal, Portugal. Electronic address: pportugal@bportugal.pt.
authors.forename: Pedro
authors.initials: P
authors.lastname: Portugal
mesh_terms: D003132:Commerce / Q000639:trends*; D005062:European Union / Q000191:economics; D006801:Humans; D013287:Illicit Drugs / Q000191:economics* / Q000331:legislation & jurisprudence*; D009664:Norway; D011174:Portugal; D011640:Public Policy
chemical_list: D013287:Illicit Drugs
keywords: Drug decriminalization policy; Drug prices; Illicit drugs; Treatment effects