# **Appendix 1. Definitions and Sources of Variables**

|**Variable**|**Definition and Construction**|**Source**|
|---|---|---|
|Prevalence of Cocaine<br>Consumption|Prevalence of abuse of cocaine as percentage of the population aged 15-64.|World Drug Report and Global Illicit Drug Trends (United Nations Office on Drugs<br>and Crime (UNODC), various years).|
|Prevalence of Heroin<br>Consumption|Prevalence of abuse of heroin (opiates) as percentage of the population aged 15-64.|World Drug Report and Global Illicit Drug Trends (UNODC, various years).|
|Cocaine Retail Prices|Typical retail (street) price of cocaine expressed in the constant 2000 US$ per gram. The Consumer Price<br>Index (CPI) is used to deflate. Prices of crack cocaine are not included. Also, prices of coca base are ignored<br>unless no other price information is available.|World Drug Report and Global Illicit Drug Trends (UNODC, various years), and<br>World Development Indicators (World Bank, various years).|
|Heroin Retail Prices|Typical retail (street) price of heroin expressed in the constant 2000 US$ per gram. The CPI is used to<br>deflate. Prices of black tar and homebake heroin are excluded. When multiple prices are available (for most<br>cases, those of heroin no.3 and no.4), an average is used.|World Drug Report and Global Illicit Drug Trends (UNODC, various years), and<br>World Development Indicators (World Bank, various years).|
|Cocaine Retail Purity|Typical retail (street) purity level of cocaine in percentage. When only the range (minimum and maximum)<br>of purity level is available, an average is computed. Purity levels of crack cocaine are excluded, and those of<br>coca base are also ignored unless no other information is found.|World Drug Report and Global Illicit Drug Trends (UNODC, various years).|
|Heroin Retail Purity|Typical retail (street) purity level of heroin in percentage. When only the range (minimum and maximum) of<br>purity level is available, an average is computed. Purity levels of black tar and homebake heroin are not<br>included. When multiple purity information is available, an average is used.|World Drug Report and Global Illicit Drug Trends (UNODC, various years).|
|Cocaine Producer<br>Countries|A dummy variable for countries where cultivation of cocaine is reported in any year during 1997 to 2005.<br>The following three countries are pertinent: Bolivia, Colombia and Peru.|World Drug Report (UNODC, 2007), Global Illicit Drug Trends (UNODC, 1999),<br>and International Narcotics Control Strategy Report (U.S. Department of State,<br>1998).|
|Opium Producer<br>Countries|A dummy variable for countries where cultivation of opium is reported in any year during 1997 to 2005. The<br>following ten countries are pertinent: Afghanistan, Colombia, Guatemala, India, Lao PDR, Mexico,<br>Myanmar, Pakistan, Thailand and Vietnam.|International Narcotics Control Strategy Report (U.S. Department of State, 1998 and<br>2007).|
|Cocaine Seizures|Seizures of cocaine (base and salts) expressed in kilogram equivalents per 1,000 population.|Illicit Drug Seizure Reports (UNODC, data retrieved from www.unodc.org), and<br>United Nations Common Database (UN, data retrieved from unstats.un.org).|
|Heroin Seizures|Seizures of heroin expressed in kilogram equivalents per 1,000 population.|Illicit Drug Seizure Reports (UNODC, data retrieved from www.unodc.org), and<br>United Nations Common Database (UN, data retrieved from unstats.un.org).|

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