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Economic Analysis of Public Policies for Controlling Heroin Use

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  • Harry Clarke

Abstract

Policies for controlling heroin use are surveyed. Motivations for harm minimisation and abstinence policies are derived. Pursuing abstinence alone using supply‐oriented policies increases heroin prices possibly creating social harm. Pursuing harm minimisation alone reduces user costs that compromise drug abstinence objectives. These tradeoffs between policy objectives are examined for a number of proposed policies including (i) the public provision of heroin to addicts, (ii) the use of safe injecting rooms, (iii) methadone programs and (iv) drug use prevention policies. Coupling legal sanctions that impact specifically on new users with harm minimisation policies, enables relaxation of some policy tradeoffs but penalises a class of users who impose low social costs.

Suggested Citation

  • Harry Clarke, 2003. "Economic Analysis of Public Policies for Controlling Heroin Use," Australian Economic Papers, Wiley Blackwell, vol. 42(2), pages 234-252, June.
    • Handle: RePEc:bla:ausecp:v:42:y:2003:i:2:p:234-252
    DOI: 10.1111/1467-8454.00197
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    References listed on IDEAS

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    1. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 401-411, July.
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    Cited by:

    1. F. G. Mixon & T. D. Pousson & T. G. Green, 2009. "Toddler economicus: childhood habit cessation in a Beckerian Model of pacifier use," Applied Economics, Taylor & Francis Journals, vol. 41(6), pages 703-713.
    2. Lippert, Steffen & Schumacher, Christoph, 2009. "Hopping on the methadone bus," Journal of Health Economics, Elsevier, vol. 28(3), pages 728-736, May.
    3. Harry Clarke & Martin Byford, 2009. "Addictive Drug Use Management Policies In A Long‐Run Economic Model," Australian Economic Papers, Wiley Blackwell, vol. 48(2), pages 151-165, June.
    4. 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.

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