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Demand for Illicit Drugs by Pregnant Women

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Author Info
Hope Corman
Kelly Noonan
Nancy E. Reichman
Dhaval Dave

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Abstract

We use survey data that have been linked to medical records data and city-level drug prices to estimate the demand for illicit drugs among pregnant women. The prevalence of prenatal drug use based on post partum interviews was much lower than that based on evidence in the mothers' and babies' medical records. We found that a $10 increase in the retail price of a gram of pure cocaine decreases illicit drug use by 12 to 15%. The estimated price effects for heroin are lower than for cocaine and are less robust across alternative model specifications. This study provides the first estimates of the effects of drug prices on prenatal drug use and yields important information about the potential of drug enforcement as a tool for improving birth outcomes.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 10688.

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Date of creation: Aug 2004
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Handle: RePEc:nbr:nberwo:10688

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Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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References listed on IDEAS
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  1. Suren Basov & Mireille Jacobson & Jeffrey A. Miron, 2001. "Prohibition and the Market for Illegal Drugs," World Economics, World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 2(4), pages 133-157, October. [Downloadable!]
  2. Grossman, Michael & Chaloupka, Frank J., 1998. "The demand for cocaine by young adults: a rational addiction approach," Journal of Health Economics, Elsevier, vol. 17(4), pages 427-474, August. [Downloadable!] (restricted)
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  3. Evans, William N. & Ringel, Jeanne S., 1999. "Can higher cigarette taxes improve birth outcomes?," Journal of Public Economics, Elsevier, vol. 72(1), pages 135-154, April. [Downloadable!] (restricted)
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  4. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Oxford University Press, vol. 37(3), pages 401-11, July.
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  5. Robert Kaestner & Theodore Joyce & Hassan Wehbeh, 1996. "The Effect of Maternal Drug Use on Birth Weight: Measurement Error in Binary Variables," NBER Working Papers 5434, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. H Saffer & FJ Chaloupka & D Dave, 2001. "State Drug Control Spending And Illicit Drug Participation," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 150-161, 04. [Downloadable!] (restricted)
  7. Hope Corman & Theodore J. Joyce & Michael Grossman, 1987. "Birth Outcome Production Functions in the U.S," NBER Working Papers 1729, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Ilyana Kuziemko & Steven D. Levitt, 2001. "An Empirical Analysis of Imprisoning Drug Offenders," NBER Working Papers 8489, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Colman, Greg & Grossman, Michael & Joyce, Ted, 2003. "The effect of cigarette excise taxes on smoking before, during and after pregnancy," Journal of Health Economics, Elsevier, vol. 22(6), pages 1053-1072, November. [Downloadable!] (restricted)
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  10. Friedrich Schneider, 2001. "What Do We Know About the Shadow Economy?," World Economics, World Economics, Economic & Financial Publishing, PO Box 69, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 1GB, vol. 2(4), pages 19-32, October. [Downloadable!]
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