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

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  • LEVY, AMNON
  • NERI, FRANK
  • GRASS, DIETER

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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Bibliographic 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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  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.
  2. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-39, May.
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Cited by:
  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.
  2. Grass, D., 2012. "Numerical computation of the optimal vector field: Exemplified by a fishery model," Journal of Economic Dynamics and Control, Elsevier, vol. 36(10), pages 1626-1658.
  3. Ken-Ichi Akao & Takashi Kamihigashi & Kazuo Nishimura, 2011. "Monotonicity and Continuity of the Critical Capital Stock in the Dechert-Nishimura Model," Discussion Paper Series DP2011-20, Research Institute for Economics & Business Administration, Kobe University, revised Sep 2011.
  4. Levy, Amnon, 2008. "A theory of entrenched socioeconomic deprivation and addiction to strong mind-altering substances," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1756-1767, October.
  5. Levy, Amnon, 2006. "A Theory of Relative Deprivation and Myopic Addiction," Economics Working Papers wp06-20, School of Economics, University of Wollongong, NSW, Australia.
  6. Amnon Levy & João Faria, 2008. "Persistent high ambition and substance abuse: a rationalization of a vicious circle," Journal of Economics, Springer, vol. 94(3), pages 261-274, September.

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