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Economic Relationship Between Alcohol and Cannabis Revisited


  • Jenny Williams
  • Parvin Mahmoudi


Consuming cannabis in combination with alcohol is common among Australian cannabis users. This paper investigates whether the economic relationship between cannabis and alcohol is affected by the manner in which these two substances are used. Our results indicate that cannabis and alcohol are economic complements for all cannabis users, but this relationship is stronger for cannabis users who tend to use alcohol and cannabis together, whom we refer to as polysubstance users. Separate analysis by gender suggests that cannabis consumption by polysubstance and non-polysubstance using males is more responsive to changes in the full price of alcohol than their female counterparts. Copyright © 2004 Economic Society of Australia..

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  • Jenny Williams & Parvin Mahmoudi, 2004. "Economic Relationship Between Alcohol and Cannabis Revisited," The Economic Record, The Economic Society of Australia, vol. 80(248), pages 36-48, March.
  • Handle: RePEc:bla:ecorec:v:80:y:2004:i:248:p:36-48

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    References listed on IDEAS

    1. P.D. Jonson & W.J. McKibbin & R.G. Trevor, 1980. "Models and Multipliers," RBA Research Discussion Papers rdp8006, Reserve Bank of Australia.
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    6. Parsell, Bruce F & Powell, Alan A & Wilcoxen, Peter J, 1991. "The Effects of Fiscal Restraint on the Australian Economy as Projected by the Murphy and MSG2 Models: A Comparison," The Economic Record, The Economic Society of Australia, vol. 67(197), pages 97-114, June.
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    Cited by:

    1. Kenneth W. Clements & Yihui Lan & Xueyan Zhao, 2005. "The Demand for Vice: Inter-Commodity Interactions with Uncertainty," Economics Discussion / Working Papers 05-30, The University of Western Australia, Department of Economics.
    2. van Ours, J.C., 2005. "Cannabis Use When it's Legal," Discussion Paper 2005-12, Tilburg University, Center for Economic Research.

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