THE CONTEXT OF DRUG POLICY - AN ECONOMIC INTERPRETATION

Economics can be used to analyze public sector decision making because individuals make these decisions within a framework of incentives and constraints that are a product of individual preferences and institut ional structure. Considering the emphasis an law enforcement in U.S. d rug policy in this context, this paper presents an analysis of the inc entives and constraints affecting drug policy that explains a reluctan ce to change the policy even in the face of considerable evidence that some reforms could be cost effective. Two specific incentives for an emphasis on enforcement are presented. First, police agencies have an incentive to allocate more resources to drug enforcement due to the fa ctors that determine police budgets. Second, asset forfeiture laws giv e police agencies a direct monetary reward for making drug arrests. We conclude that understanding drug policy requires an examination of th e incentives and constraints that affect the behavior of those who are responsible for policy development.