Drug trading analysis model based on weight graph, correlation analysis and Leontief function

Abstract

Our paper mainly studies the integrated application of weight graph, correlation coefficient and Leontief function to regional drug trading. To be better understood, we establish our model on the analysis of drug transaction among 5 states in America, including Ohio, Kentucky, West Virginia, Virginia and Pennsylvania. First, we build the weight graph with 5 states as vertexes to calculate the transaction strength of each state with others to predict the drug diffusion trend. And based on equilibrium analysis, we find that only the drug market in Ohio hasn’t reached balanced state, which means the drug sale will increases. Second, we select 13 socio-economic indicators, aiming to use correlation analysis to reflect their influence on drug diffusion. We find that more incomplete households, more population with bad marital status and with low educational attainment probably ascend the drug cases. Third, we apply Leontief function to analysing how the drug production change when the quantity of material, transportation, fixed capital, workforce and demand, 5 main parts in the complete industrial chain are changing. Therefore, it may help to come up with some practical ways of controlling the illegal drug transaction.