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Do Youths Substitute Alcohol and Marijuana? Some Econometric Evidence

  • Frank J. Chaloupka

    (University of Illinois, Chicago
    NBER)

  • Adit Laixuthai

    (Chulalongkorn University)

This paper examines the substitutability of alcoholic beverages and marijuana among youths. Results indicate that drinking frequency and heavy drinking are negatively related to beer prices, but positively related to the full price of marijuana. The implications of this for driving while intoxicated are examined using self-reported involvement in non-fatal accidents and state-level youth motor vehicle accident fatality rates. The results imply that the net effect of an increase in the full price of alcohol on youth traffic crashes is negative, while the opposite is found for marijuana.

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File URL: http://college.holycross.edu/RePEc/eej/Archive/Volume23/V23N3P253_276.pdf
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Article provided by Eastern Economic Association in its journal Eastern Economic Journal.

Volume (Year): 23 (1997)
Issue (Month): 3 (Summer)
Pages: 253-276

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Handle: RePEc:eej:eeconj:v:23:y:1997:i:3:p:253-276
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  1. Henry Saffer & Michael Grossman, 1986. "Beer Taxes, the Legal Drinking Age, and Youth Motor Vehicle Fatalities," NBER Working Papers 1914, National Bureau of Economic Research, Inc.
  2. Douglas Coate & Michael Grossman, 1986. "Effects of Alcoholic Beverage Prices and Legal Drinking Ages on Youth Alcohol Use," NBER Working Papers 1852, National Bureau of Economic Research, Inc.
  3. Frank J. Chaloupka & Henry Saffer & Michael Grossman, 1991. "Alcohol Control Policies and Motor Vehicle Fatalities," NBER Working Papers 3831, National Bureau of Economic Research, Inc.
  4. Michael Grossman & Frank J. Chaloupka & Henry Saffer & Adit Laixuthai, 1993. "Effects of Alcohol Price Policy on Youth," NBER Working Papers 4385, National Bureau of Economic Research, Inc.
  5. John DiNardo & Thomas Lemieux, 1992. "Alcohol, Marijuana, and American Youth: The Unintended Effects of Government Regulation," NBER Working Papers 4212, National Bureau of Economic Research, Inc.
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