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Cannabis Prices and Dynamics of Cannabis Use

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Author Info
van Ours, Jan C
Williams, Jenny

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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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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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Related research
Keywords: age of initiation cannabis prices cannabis use

Other versions of this item:

Find related papers by JEL classification:
C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
I19 - Health, Education, and Welfare - - Health - - - Other

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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. van Ours, Jan C., 2003. "Is cannabis a stepping-stone for cocaine?," Journal of Health Economics, Elsevier, vol. 22(4), pages 539-554, July. [Downloadable!] (restricted)
    Other versions:
  2. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Oxford University Press, vol. 37(3), pages 401-11, July.
    Other versions:
  3. 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. [Downloadable!] (restricted)
  4. Stephen Pudney, 2004. "Keeping off the grass? An econometric model of cannabis consumption in Britain," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 19(4), pages 435-453. [Downloadable!]
  5. R. L. Pacula & M. Grossman & F. J. Chaloupka & P. M. O'Malley & L. Johnston & M. C. Farrelly, 2000. "Marijuana and Youth," NBER Working Papers 7703, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Jonathan Gruber, 2000. "Risky Behavior Among Youths: An Economic Analysis," NBER Working Papers 7781, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. J. Williams, 2004. "The effects of price and policy on marijuana use: what can be learned from the Australian experience?," Health Economics, John Wiley & Sons, Ltd., vol. 13(2), pages 123-137. [Downloadable!]
  8. Farrelly, Matthew C. & Bray, Jeremy W. & Zarkin, Gary A. & Wendling, Brett W., 2001. "The joint demand for cigarettes and marijuana: evidence from the National Household Surveys on Drug Abuse," Journal of Health Economics, Elsevier, vol. 20(1), pages 51-68, January. [Downloadable!] (restricted)
  9. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547. [Downloadable!] (restricted)
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  10. Philip DeCicca & Donald Kenkel & Alan Mathios, 2002. "Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 144-169, February. [Downloadable!] (restricted)
  11. Douglas, Stratford, 1998. "The Duration of the Smoking Habit," Economic Inquiry, Oxford University Press, vol. 36(1), pages 49-64, January.
  12. Jenny Williams & Rosalie Liccardo Pacula & Frank J. Chaloupka & Henry Wechsler, 2001. "Alcohol and Marijuana Use Among College Students: Economic Complements or Substitutes?," NBER Working Papers 8401, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  13. Michael P. Kidd & Sandra Hopkins, 2004. "The Hazards of Starting and Quitting Smoking: Some Australian Evidence," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 177-192, 06. [Downloadable!] (restricted)
  14. 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. [Downloadable!]
  15. Jeff DeSimone & Matthew C. Farrelly, 2003. "Price and Enforcement Effects on Cocaine and Marijuana Demand," Economic Inquiry, Oxford University Press, vol. 41(1), pages 98-115, January.
    Other versions:
  16. van Ours, Jan C., 2004. "A pint a day raises a man's pay; but smoking blows that gain away," Journal of Health Economics, Elsevier, vol. 23(5), pages 863-886, September. [Downloadable!] (restricted)
  17. Douglas, Stratford & Hariharan, Govind, 1994. "The hazard of starting smoking: Estimates from a split population duration model," Journal of Health Economics, Elsevier, vol. 13(2), pages 213-230, July. [Downloadable!] (restricted)
Full references

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. Ours, J.C. van & Williams, J., 2007. "Why Parents Worry: Initiation into Cannabis use by Youth and their Educational Attainment," Discussion Paper 2007-60, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
  2. Jan C. van Ours, 2006. "Dynamics in the use of drugs," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1283-1294. [Downloadable!]
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This page was last updated on 2008-10-11.

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