The demand for cocaine by young adults: a rational addiction approach

Grossman, Michael; Chaloupka, Frank J.

doi:10.1016/s0167-6296(97)00046-5

Cited by 221 publications

(91 citation statements)

References 42 publications

(30 reference statements)

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“…Saffer and Chaloupka (1999) find a price elasticity for the prevalence of heroin of -0.9 and for the prevalence of cocaine of -0.55. Grossman and Chaloupka (1998) find that cocaine consumption by American youth is very responsive to changes in its price. Also, the different legal approach to alcohol and marijuana is likely to explain different cocaine consumption among the U.S. states.…”

Section: Related Literaturementioning

confidence: 90%

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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Section: Related Literaturementioning

confidence: 90%

Drug decriminalization and the price of illicit drugs

Félix

Portugal

2017

International Journal of Drug Policy

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“…The jail terms and fines for marijuana possession pertain to a first offence of possessing the lowest quantity of marijuana mentioned in the statute (see Pacula et al 2003b). The methodology for creating the cocaine price series is described in detail in Grossman and Chaloupka (1998 to serious problem at this school; and (2) dummy variable indicating that the school policy is to expel students for a first occurrence of illegal drug possession at school. These variables are used for identification while controlling for the same two variables measured in high school.…”

Section: The National Education Longitudinal Studymentioning

confidence: 99%

Illicit drug use and educational attainment

Chatterji

2006

Health Econ.

114

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This paper uses data from the National Education Longitudinal Study to estimate the association between illicit drug use during high school and the number of years of schooling completed. The analysis accounts for the possibility that drug use is endogenous using two methods: (1) by controlling for individual-level characteristics measured before high school entrance; and (2) by using an instrumental variables method, with state drug policies and 8th grade school characteristics as identifying variables. Findings suggest that marijuana and cocaine use in both 10th and 12th grade are associated with reductions in the number of years of schooling completed. (Johnston et al. 2002). The recent increase in illicit drug use among youth has led to concern about both the short-term and the long-term consequences of this risky behavior (ONDCP 2003). PinkaPart of the concern about adolescent substance use stems from the idea that drug use interferes with the rapid accumulation of social, emotional and academic skills that normally takes place during adolescence. Drug use has the potential to detract from motivation, cognition, and memory as well as the potential to exacerbate existing mental disorders, all of which can affect academic performance (Hawkins et al. 1992, Brook et al. 1999. It is widely believed that drug use leads to academic failure, and, at first glance, the empirical evidence supports this viewpoint. Adolescent marijuana users, for example, are about twice as likely as non-users to drop out of high school, perform worse than non-users on some standardized achievement tests, and are much more likely than non-users to report poor academic performance. (Brook et al. 1999;Bray et al. 2000; Yamada et al. 1998, Diego et al. 2003, Pacula et al. 2003a.The relationship between substance use and academic outcomes, however, clearly has the potential to be bidirectional. While substance use during adolescence is associated with later academic problems, early school failure and low attachment to school have been identified as 3 leading risk factors for substance use, as well as good predictors of low educational attainment in the future, independent of drug use (Hawkins et al. 1992, Jessor & Jessor 1978. Substance use appears to be both a cause and a result of academic problems, and disentangling these pathways is an empirical challenge.The This study is the first to estimate using national data the effect of illicit drug use on educational attainment, while directly addressing the possibility that drug use is endogenous.The findings suggest that past month marijuana use in 10 th or 12 th grade is associated with a reduction in educational attainment at age 26 of about 0.2 to 0.3 years, while lifetime cocaine use by 10 or 12 th grade is associated with a reduction in attainment of about 0.2 to 0.4 years.However, there is evidence of some selection into drug use along observed variables, which may imply selection into drug use along unobserved factors that also affect educational attainment. 4The IV results, w...

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“…The Becker and Murphy [3] theory has been applied to the consumption of cigarettes, see Chaloupka [8], Becker, Grossman and Murphy [9], Labeaga [10,11], Baltagi and Gri¢ n [12], Gruber and Köszegi [7] and Jones and Labeaga [13]; to the consumption of alcohol, see Grossman, Chaloupka and Sirtalan [14] and Baltagi and Gri¢ n [15]; to the consumption of ca¤eine, see Olekalns and Bardsley [16]; cocaine, see Grossman and Chaloupka [17] and illicit drugs, see Sa¤er and Chaloupka [18]. A key feature of this theory is that consumption of an addictive good will depend on future as well as past consumption.…”

Section: Introductionmentioning

confidence: 99%