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Cannabis Prices and Dynamics of Cannabis Use

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  • van Ours, Jan C
  • Williams, Jenny

Abstract

This paper uses duration models and self-reported cannabis histories from young Australians to study the dynamics of cannabis use. We find that low cannabis prices are associated with early initiation into cannabis use. While the decision to quit does not appear to be directly influenced by price, we find that the younger an individual is when they start using cannabis the less likely they are to quit. Therefore, low cannabis prices lead to early use and because of that they lead to a low quit rate and hence a longer duration of use.

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Bibliographic Info

Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4991.

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Date of creation: Apr 2005
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Handle: RePEc:cpr:ceprdp:4991

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Keywords: age of initiation; cannabis prices; cannabis use;

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References

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  1. van Ours, Jan C & Williams, Jenny, 2005. "Cannabis Prices and Dynamics of Cannabis Use," CEPR Discussion Papers 4991, C.E.P.R. Discussion Papers.
  2. Rosalie Liccardo Pacula & Michael Grossman & Frank J. Chaloupka & Patrick M. O’Malley & Lloyd D. Johnston & Matthew C. Farrelly, 2001. "Marijuana and Youth," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 271-326 National Bureau of Economic Research, Inc.
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  15. Xueyan Zhao & Mark N. Harris, 2004. "Demand for Marijuana, Alcohol and Tobacco: Participation, Levels of Consumption and Cross-equation Correlations," The Economic Record, The Economic Society of Australia, vol. 80(251), pages 394-410, December.
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  23. Martin Forster & Andrew M. Jones, . "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York.
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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Review: Drugs – Without the Hot Air (David Nutt)
    by Sam Watson in The Academic Health Economists' Blog on 2013-02-14 12:53:56
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. van Ours, Jan C & Williams, Jenny, 2011. "The Effects of Cannabis Use on Physical and Mental Health," CEPR Discussion Papers 8499, C.E.P.R. Discussion Papers.
  2. van Ours, Jan C. & Williams, Jenny, 2012. "The effects of cannabis use on physical and mental health," Journal of Health Economics, Elsevier, vol. 31(4), pages 564-577.
  3. van Ours, Jan C. & Williams, Jenny, 2009. "Cannabis Use and Mental Health Problems," CEPR Discussion Papers 7384, C.E.P.R. Discussion Papers.
  4. Bretteville-Jensen, Anne Line & Jacobi, Liana, 2008. "Climbing the Drug Staircase: A Bayesian Analysis of the Initiation of Hard Drug Use," IZA Discussion Papers 3879, Institute for the Study of Labor (IZA).
  5. Tauchmann, Harald, 2008. "West-East Convergence in the Prevalence of Cannabis Use: Socioeconomics or Culture?," Economics - The Open-Access, Open-Assessment E-Journal, Kiel Institute for the World Economy, vol. 2(29), pages 1-27.
  6. van Ours, Jan C & Williams, Jenny, 2005. "Cannabis Prices and Dynamics of Cannabis Use," CEPR Discussion Papers 4991, C.E.P.R. Discussion Papers.
  7. Palali, A. & Ours, J.C. van, 2013. "Distance to Cannabis-Shops and Age of Onset of Cannabis Use," Discussion Paper 2013-048, Tilburg University, Center for Economic Research.
  8. Beau Kilmer & Rosalie Liccardo Pacula, 2010. "Preventing Drug Use," NBER Chapters, in: Targeting Investments in Children: Fighting Poverty When Resources are Limited, pages 181-220 National Bureau of Economic Research, Inc.
  9. Williams, J. & Ours, J.C. van & Grossmann, M., 2011. "Why Do Some People Want to Legalize Cannabis Use?," Discussion Paper 2011-007, Tilburg University, Center for Economic Research.
  10. van Ours, Jan C. & Williams, Jenny, 2009. "Why parents worry: Initiation into cannabis use by youth and their educational attainment," Journal of Health Economics, Elsevier, vol. 28(1), pages 132-142, January.
  11. Pudney, Stephen & Bryan, Mark & DelBono, Emilia, 2013. "Licensing and regulation of the cannabis market in England and Wales: Towards a cost-benefit analysis," MPRA Paper 50365, University Library of Munich, Germany.
  12. repec:ese:iserwp:2013-08 is not listed on IDEAS
  13. Jan C. van Ours, 2006. "Dynamics in the use of drugs," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1283-1294.
  14. Ours, J.C. van, 2011. "The Long and Winding Road to Cannabis Legalization," Discussion Paper 2011-126, Tilburg University, Center for Economic Research.
  15. Anne Bretteville-Jensen, 2006. "Drug Demand – Initiation, Continuation and Quitting," De Economist, Springer, vol. 154(4), pages 491-516, December.

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