Smuggling and parallel markets for exports

Models for nuclear smuggling interdiction

We describe two stochastic network interdiction models for thwarting nuclear smuggling. In the first model, the smuggler travels through a transportation network on a path that maximizes the probability of evading detection, and the interdictor installs radiation sensors to minimize that evasion probability. The problem is stochastic because the smuggler’s origin-destination pair is known only ...

Smuggling , Camouflaging , and Market Structure

We examine how market structure and enforcement affect smuggling and welfare in a model where smuggling is camouflaged by legal sales. Conditions are given for when some, but not necessarily all, firms smuggle. With camouflaging, t e market price is below the price when all sales are legal, so smuggling improves wel if the price effect outweighs excess smuggling cost. This welfare effect is dir...

Tobacco Smuggling

Exports versus FDI in German manufacturing: firm performance and participation in international markets

This paper tests some of the predictions of recent advances in trade theory that have focused on different trade patterns of firms within the same sector. Helpman, Melitz and Yeaple (2005) develop a model in which innate productivity differences between firms determine the degree of international engagement of firms: The least productive firms produce for the domestic market, better performers ...

The Effects of Enforcement on Illegal Markets: Evidence from Migrant Smuggling along the Southwestern Border

The Effects of Enforcement on Illegal Markets: Evidence from Migrant Smuggling along the Southwestern Border This paper analyzes how enforcement along the U.S.-Mexican border has affected the market for migrant smugglers. Using a unique dataset that links border crossing histories from illegal Mexican migrants to aggregate enforcement and punishment statistics, we find that the effect of enforc...