The demand for cocaine by young adults: a rational addiction approach.
This paper applies the rational addiction model to the demand for cocaine by young adults in the Monitoring the Future panel. The price of cocaine is added to this survey from the Drug Enforcement Administration's System to Retrieve Information from Drug Evidence. Results suggest that annual participation and frequency of use given participation are negatively related to the price of cocaine. In addition, current participation (frequency) is positively related to past and future participation (frequency). The long-run price elasticity of total consumption (participation multiplied by frequency given participation) of -1.35 is substantial.
Grossman
M
M
National Bureau of Economic Research, New York, NY 10017, USA. mgrossma@email.gc.cuny.edu
Chaloupka
F J
FJ
D000293:Adolescent; D000328:Adult; D003042:Cocaine / Q000191:economics*; D015331:Cohort Studies; D003625:Data Collection; D003627:Data Interpretation, Statistical; D016527:Drug Costs / Q000706:statistics & numerical data*; D004335:Drug and Narcotic Control; D005382:Financing, Personal / Q000706:statistics & numerical data; D006801:Humans; D017059:Models, Econometric; D012107:Research Design; D019966:Substance-Related Disorders / Q000191:economics*; D014481:United States
D003042:Cocaine