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An Economic Analysis of a Drug-Selling Gang's Finances*

Quarterly Journal of Economics 2000 115(3), 755-789 open access
Street gangs have a long history in American cities (Thrasher 1927). Until recently, gangs were organized primarily as social peer groups. Any economic activities were of secondary importance (Suttles 1968, Klein 1995). The last two decades, however, have given rise to a dramatic transformation in street gangs, or what Taylor (1990) terms their "corporatization."