5IE375 – Drogy v ekonomii

5IE375 – Drugs and economics, Summer 2010

Class period: Tue 12:45 – 14:15, Rb 112 / Tue 14:30 – 16:00, Sb 308

Lecturer: Ing. Mgr. Vendula Běláčková 

Email: vendula.belackova@vse.cz

Office Hours: Tuesday, 16:00-16:45 or by appointment, at Sb  313


Course description:

The class is intended to explain economic perspecives of drug issues, including economic analysis of illicit drug markets, individual decision making and economic evaluation of drug policies. Teacher presentations will be accompanied with student presentations of scientific articles on topics covered in class.


Course requirements:

Active lecture participation          Present in classes, active in discussions
(2 p. per class, 4 p. as a discussant)
30 %
Presentation 10 minutes presentation of a published research paper in class on a selected topic (background, data, methods, results, conclusions); www.vse.cz/zdroje (JSTOR, ProQuest); scholar.google.com 10 %
Term paper Write own seminar paper (at least 2 more research papers on the same topic used, look up some data on your country situation) 30 %
Final test In class / Take – home will be decided 30 %
Total   100 %

Notes on presentation:

In your presentation, you will be evaluated also for the article you choose  – it has to be a research paper with research methods (background, data, methods, results, conclusions – and these should be the main points in your presentation). Send the article to the lecturer same as to your discussant by Friday, if approved, the lecturer will post it on the document server ISIS, so that everyone is free to download it by Saturday. The discussant shall be able to provide a feedback whether the presentation was accurate, and point out something that was not mentioned in the presentation.

–         one research paper per individual / two presentations on the same topic in one class 

–         articles will be different, presentees make discussants to one another 

–         class participants are welcome to look up the article in advance on ISIS (since Saturday) 

Notes on seminar paper:

Maximum 5 pages, at least 3 scientific research papers used, 1,5 line spacing, 3 – 8 pages, submitted in the course of exam term.

Notes on test:

Will be send out on an agreed date via email, expected back in four days.


Course evaluation:

A: 90 %; B: 75 %; C: 60 %; D+: 50% 


Course outline: 

CLASS 1 – 2 (16th and 23rd February 2010)

Introduction into drugs and economics

– class outline, recommended literature

– basic perspectives of economic analysis in the field of illicit drugs

– interdisciplinary approach 


CLASS  3 – 4 (2nd and 9th March 2010)

Drug policy and its interventions

– demand reduction, supply reduction, harm reduction

– drug policy in the world and in the Czech republic

– drog policy and economic theory


CLASS  5 – 6 (16th and 23rd March 2010)

Demand for illicit drugs

– patterns of drug use

– economic approach to the use of illicit drugs (demand for illicit drugs)

– theory of rational addiction and its oponents

– price elasticity of demand for illicit drugs, implications for drug policies


CLASS  7-8 (30th March and 6th April 2010)

Supply theory on illicit drug market

– illicit markets and their mechanisms

– the theory of price on illicit drug markets


CLASS 9-10 (13th and 20th April) – no class on April 27th

Drug markets in the world

– global drug market and developping countries

– supply and demand on final drug markets


CLASS 11 – 12 (4th and 11th May)

Economic evaluation of drug policies and interventions

– the costs of drug use and drug policies

– the tools for economic analysis of drug policies

– quantifications of outcomes (QALYs – Quality Adjusted Life Years)


Presentation topics:

 1.       Economic evaluation of drug policies

2.       Evaluating regulation of tobacco, alcohol, pharmaceutics or medical marijuana control

3.       Alternatives to current drug policies

4.       Price elasicticity of demand for drugs

5.       Theory of rational addiction

6.       Prices on illicit drug markets

7.       Illegal market characteristics (incl. alcohol prohibition)

8.       Drugs and crime link

9.       Drug economies in developping world

10.    Final drug supply chains

11.    Effectiveness of harm reduction services

12.    Effectiveness of drug treatment services

13.    Effectiveness of drug prevention programmes

14.    Effectiveness of law enfocement