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Macroeconomic Aspects Of Substance Abuse: Diffusion, Productivity And Optimal Control

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Author Info
LEVY, AMNON
NERI, FRANK
GRASS, DIETER

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Abstract

This paper deals with macroeconomic aspects of widespread substance abuse with a reference to illicit drugs as an example. Substance abuse impedes the productivity of the labor force and reduces economic growth. Workers are either nonusers and therefore fully productive, a number of whom are employed by the government in drug-control activities, or users who are only partially productive. Efficient management of the nation s portfolio of workers involves eradicating drug use when initial user numbers are lower than a critical level, but allows user numbers to rise to, and be accommodated at, a stationary level when initial user numbers exceed a critical level.

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Publisher Info
Article provided by Cambridge University Press in its journal Macroeconomic Dynamics.

Volume (Year): 10 (2006)
Issue (Month): 02 (April)
Pages: 145-164
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Handle: RePEc:cup:macdyn:v:10:y:2006:i:02:p:145-164_05

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Dechert, W. Davis & Nishimura, Kazuo, 1983. "A complete characterization of optimal growth paths in an aggregated model with a non-concave production function," Journal of Economic Theory, Elsevier, vol. 31(2), pages 332-354, December. [Downloadable!] (restricted)
  2. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-39, May. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Levy, Amnon & Faria, João Ricardo, 2006. "Depression and Substance Abuse: A Rationalization of a Vicious Circle," Economics Working Papers wp06-16, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
  2. Levy, Amnon, 2006. "A Theory of Relative Deprivation and Myopic Addiction," Economics Working Papers wp06-20, School of Economics, University of Wollongong, NSW, Australia. [Downloadable!]
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This page was last updated on 2009-12-9.


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