INTERNAL COCAINE TRAFFICKING AND ARMED VIOLENCE IN COLOMBIA.

This paper exploits time variations in international cocaine prices and potential trafficking routes within Colombia to estimate the effect of the illegal cocaine trade on changes in municipality homicide rates. I construct the potential internal cocaine‐trafficking network and exploit the fact that different regions in Colombia have comparative advantages in serving different international markets. My results suggest that when cocaine prices increase in either the United States or Europe, homicide rates increase in municipalities strategically placed to serve each international market. [ABSTRACT FROM AUTHOR]