AbstractPainkilling drugs produce a good called relief which reduces the fixed level of bad (pain) the individual is endowed with. These drugs have the side-effect of reducing the utility the individual gets from consuming goods. This means that the shadow price of relief counts not only the cost of drugs and their ability to reduce pain, but also the undesired reduction in pleasure from consuming goods. The tradeoff between goods and relief is non-linear and convex even for painkilling drugs that have a linear effect on pain. Small increases in pain may push the individual to a corner where painkilling drugs dominate his life. This seeming dependence on the drug has nothing to do with addiction or habit formation, but is a consequence of how consumption of these drugs changes the shadow prices of goods and relief.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Microeconomics with number 0111003.
Length: 19 pages
Date of creation: 14 Nov 2001
Date of revision:
Note: Type of Document - PDF; prepared on IBM PC; to print on HP/PostScript; pages: 19; figures: included. PDF document can be viewed or printed
Contact details of provider:
Web page: http://184.108.40.206
Pain; addiction; drugs; household production;
Find related papers by JEL classification:
- I10 - Health, Education, and Welfare - - Health - - - General
- D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
This paper has been announced in the following NEP Reports:
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.:
- Zarkin, Gary A. & French, Michael T. & Mroz, Thomas & Bray, Jeremy W., 1998. "Alcohol use and wages: New results from the national household survey on drug abuse," Journal of Health Economics, Elsevier, vol. 17(1), pages 53-68, January.
- Robert Kaestner, 1994. "New estimates of the effect of marijuana and cocaine use on wages," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 47(3), pages 454-470, April.
- Becker, Gary S & Murphy, Kevin M, 1988.
"A Theory of Rational Addiction,"
Journal of Political Economy,
University of Chicago Press, vol. 96(4), pages 675-700, August.
- Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
- French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August.
- Suranovic, Steven M. & Goldfarb, Robert S. & Leonard, Thomas C., 1999. "An economic theory of cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 1-29, January.
- Becker, Gary S & Tomes, Nigel, 1976.
"Child Endowments and the Quantity and Quality of Children,"
Journal of Political Economy,
University of Chicago Press, vol. 84(4), pages S143-62, August.
- Gary S. Becker & Nigel Tomes, 1976. "Child Endowments, and the Quantity and Quality of Children," NBER Working Papers 0123, National Bureau of Economic Research, Inc.
- Boyer, M., 1981.
"Rational Demand and Expenditures Patterns Under Habit Formation,"
Cahiers de recherche
8133, Universite de Montreal, Departement de sciences economiques.
- Boyer, Marcel, 1983. "Rational demand and expenditures patterns under habit formation," Journal of Economic Theory, Elsevier, vol. 31(1), pages 27-53, October.
- Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.