01840cas a2200253 a 4500 AALejournalIMF011216 230101c9999 xx r poo 0 0eng d 5.00 USD 9781462310289 1018-5941 BD-DhAAL BD-DhAAL Pedroni, Peter. The Relationship Between Illicit Coca Production and Formal Economic Activity in Peru / Peter Pedroni, Concha Verdugo Yepes. Washington, D.C. : International Monetary Fund, 2011. 1 online resource (51 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the relationship between unrecorded economic activity associated with the production of illicit coca and formally recorded economic activity in Peru. It does so by attempting to construct new regional level estimates for coca production and by implementing recently developed panel time series methods that are robust to regional heterogeneity and unobserved regional inter-dependencies. The paper finds that on balance illicit coca production crowds out formal sector production at the regional level, regardless of whether unanticipated changes occur nationally or regionally. However, total output nevertheless increases, since formal sector production is crowded out less than one for one. Mode of access: Internet Verdugo Yepes, Concha. IMF Working Papers; Working Paper ; No. 2011/182 Full text available on IMF http://elibrary.imf.org/view/journals/001/2011/182/001.2011.issue-182-en.xml IMF e-Library