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The Effects Of Government Policy On Drug Use: Java, 1875–1904

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  • Van Luijk, Eric W.
  • Van Ours, Jan C.

Abstract

We study a period of Javanese history when the consumption of opium was legal, but the supply of it was undergoing substantial institutional transformation. Through most of the nineteenth century the opium trade was organized into a system of “revenue farms,†which were privately owned local monopolies that bought raw opium from the government, refined it, and sold it to consumers. After 1893 this system was replaced by a government monopoly, the so-called opium regie, which controlled importation, refining, and retailing. Our main conclusion is that this change in policy substantially reduced opium consumption.

Suggested Citation

  • Van Luijk, Eric W. & Van Ours, Jan C., 2001. "The Effects Of Government Policy On Drug Use: Java, 1875–1904," The Journal of Economic History, Cambridge University Press, vol. 61(1), pages 1-18, March.
    • Handle: RePEc:cup:jechis:v:61:y:2001:i:01:p:1-18_02
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    Cited by:

    1. Craig A. Gallet, 2014. "Can Price Get The Monkey Off Our Back? A Meta‐Analysis Of Illicit Drug Demand," Health Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 55-68, January.
    2. Carrieri, Vincenzo & Madio, Leonardo & Principe, Francesco, 2020. "Do-It-Yourself medicine? The impact of light cannabis liberalization on prescription drugs," Journal of Health Economics, Elsevier, vol. 74(C).

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