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Participation in marijuana, cocaine and heroin consumption in Australia: a multivariate probit approach

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  • Preety Ramful
  • Xueyan Zhao

Abstract

This article investigates factors affecting the participation in marijuana, cocaine and heroin using micro-unit data from an Australian national survey on recreational drugs. Accounting for cross-drug correlation potentially induced by unobserved personal characteristics such as individual tastes and addictive personalities, we estimate a trivariate probit model, where the participation decisions are jointly modelled as a system with correlated error terms. The estimated correlation coefficients are significant across all three drugs. The study provides valuable empirical information on conditional and joint probabilities of drug participation. The multivariate approach is shown to provide better analysis relative to a univariate approach that does not address the endogeneity of all drug participation variables.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/00036840701522853
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 41 (2009)
Issue (Month): 4 ()
Pages: 481-496

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Handle: RePEc:taf:applec:v:41:y:2009:i:4:p:481-496

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Cited by:
  1. Sarah Brown & Mark N Harris & Preety Srivastava, 2013. "Modelling Illegal Drug Participation in Australia," Bankwest Curtin Economics Centre Working Paper series WP1303, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
  2. Carlos Casacuberta & Mariana Gerstenblüth & Patricia Triunfo, 2012. "Aportes del análisis económico al estudio de las drogas," Documentos de Trabajo (working papers) 0112, Department of Economics - dECON.
  3. William H Greene & Mark N Harris & Preety Srivastava & Xueyan Zhao, 2013. "Econometric Modelling of Social Bads," Bankwest Curtin Economics Centre Working Paper series WP1305, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.

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