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The Price Elasticity of Hard Drugs: The Case of Opium in the Dutch East Indies, 1923-1938

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  • van Ours, Jan C

Abstract

At the beginning of this century, the Dutch government controlled the opium market in the Dutch East Indies--nowadays Indonesia--for several decades. This state monopoly was called the opiumregie. Using information gathered during the opiumregie, this paper estimates price elasticities of opium consumption. It appears that short-term price elasticities of opium use are about -0.7. Long-term price elasticities are about -1.0. Copyright 1995 by University of Chicago Press.

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  • van Ours, Jan C, 1995. "The Price Elasticity of Hard Drugs: The Case of Opium in the Dutch East Indies, 1923-1938," Journal of Political Economy, University of Chicago Press, vol. 103(2), pages 261-279, April.
    • Handle: RePEc:ucp:jpolec:v:103:y:1995:i:2:p:261-79
    DOI: 10.1086/261983
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