Demand for Marijuana, Alcohol and Tobacco: Participation, Levels of Consumption and Cross‐equation Correlations*

Zhao, Xueyan; Harris, Mark N.

doi:10.1111/j.1475-4932.2004.00197.x

Cited by 83 publications

(84 citation statements)

References 13 publications

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“…Others have found a slight increase (e.g. Williams 2004;Zhao and Harris 2004;Damrongplasit et al 2010). Still others have shown how difficult it is to make any certain judgment on the effects of decriminalization on drug use, given the absence of adequate comparators (Pacula et al 2004;Hughes 2009).…”

Section: Introductionmentioning

confidence: 99%

What Can We Learn From The Portuguese Decriminalization of Illicit Drugs?

Hughes

Stevens

2010

British Journal of Criminology

267

161

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Section: Introductionmentioning

confidence: 99%

What Can We Learn From The Portuguese Decriminalization of Illicit Drugs?

Hughes

Stevens

2010

British Journal of Criminology

267

161

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“…Recent empirical work by Williams (2004), Zhao and Harris (2004), and Damrongplasit, Hsiao, and Zhao (2010), shows a slight increase of drug use subsequent to drug decriminalization. Featherston and Lenton (2007) and Donnelly, Hall, and Christie (1995) find no significant association.…”

Section: Introductionmentioning

confidence: 99%

Drug decriminalization and the price of illicit drugs

Félix

Portugal

2017

International Journal of Drug Policy

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit organization supported by Deutsche Post Foundation. The center is associated with the University of Bonn and offers a stimulating research environment through its international network, workshops and conferences, data service, project support, research visits and doctoral program. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. Terms of use: Documents in D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. This study is an empirical assessment of the impact of the drug decriminalization policy followed by Portugal in July, 2001. We investigate especially the impact of the policy change on the price of illicit drugs. The analysis is performed using a difference-in-differences approach and a comprehensive set of countries as control group. We also investigate the application of Synthetic Control Method in order to construct a synthetic control unit from a convex combination of other countries. The results suggest that the prices of opiates and cocaine in the post-treatment period did not decrease in the sequence of the policy change. This result contrasts with the argument that softer drug law enforcement necessarily leads to lower prices and, consequently, to higher drug usage rates and dependence.JEL Classification: C21, D04

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“…Here Jimenez and Labeaga (1994), Decker and Schwartz (2000), Cameron and Williams (2001), Zhao and Harris (2004), and Picone et al (2004) 2 may serve as representative examples of the respec-1 Focussing on revenues of pubs and bars as a rough measure of alcohol consumption, recent empirical evidence for Germany does not point at any significant impact of smoking bans on drinking (Ahlfeldt and Maenning, 2010) or finds just a small decreasing effect on alcohol consumption (Kvasnicka and Tauchmann, 2012). Yet, by completely ignoring home consumption, these analyses might provide a rather incomplete picture.…”

Section: Introductionmentioning

confidence: 99%

Tobacco and alcohol: complements or substitutes?

et al. 2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractThe question of whether alcohol and tobacco are consumed as complements or substitutes is crucial for determining the side-effects of anti-smoking policies. Numerous papers have empirically addressed this issue by estimating demand systems for alcohol and tobacco and subsequently calculating cross-price effects. However, this traditional approach is often seriously hampered by insufficient price variation observed in survey data. We therefore suggest an alternative instrumental variables approach that statistically mimics an experimental study and does not rely on prices as explanatory variables. This approach is applied using German survey data. Our estimation results suggest that a reduction in tobacco consumption results in a moderate reduction in alcohol consumption. It is demonstrated that this implies that alcohol and tobacco are complements. Hence, we conclude that successful anti-smoking policies will not result in the unintended side-effect of an increased (ab)use of alcohol. complements or substitutes interdependence in consumption tobacco and alcohol insufficient price-variation instrumental variables approach JEL Classification C31 · D12 · I12

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Demand for Marijuana, Alcohol and Tobacco: Participation, Levels of Consumption and Cross‐equation Correlations*

Cited by 83 publications

References 13 publications

What Can We Learn From The Portuguese Decriminalization of Illicit Drugs?

What Can We Learn From The Portuguese Decriminalization of Illicit Drugs?

Drug decriminalization and the price of illicit drugs

Tobacco and alcohol: complements or substitutes?

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