IDEAS home Printed from https://ideas.repec.org/h/spr/dymchp/978-3-319-39120-5_2.html
   My bibliography  Save this book chapter

Dynamic Drug Policy: Optimally Varying the Mix of Treatment, Price-Raising Enforcement, and Primary Prevention Over Time

In: Dynamic Perspectives on Managerial Decision Making

Author

Listed:
  • Jonathan P. Caulkins

    (Carnegie Mellon University)

  • Gernot Tragler

    (TU Wien)

Abstract

A central question in drug policy is how control efforts should be divided among enforcement, treatment, and prevention. Of particular interest is how the mix should vary dynamically over the course of an epidemic. Recent work considered how various pairs of these interventions interact. This paper considers all three simultaneously in a dynamic optimal control framework, yielding some surprising results. Depending on epidemic parameters, one of three situations pertains. It may be optimal to eradicate the epidemic, to “accommodate” it by letting it grow, or to eradicate if control begins before drug use passes a DNSS threshold but accommodate if control begins later. Relatively modest changes in parameters such as the perceived social cost per unit of drug use can push the model from one regime to another, perhaps explaining why opinions concerning proper policy diverge so sharply. If eradication is pursued, then treatment and enforcement should be funded very aggressively to reduce use as quickly as possible. If accommodation is pursued then spending on all three controls should increase roughly linearly but less than proportionally with the size of the epidemic. With the current parameterization, optimal spending on prevention varies the least among the three types of control interventions.

Suggested Citation

  • Jonathan P. Caulkins & Gernot Tragler, 2016. "Dynamic Drug Policy: Optimally Varying the Mix of Treatment, Price-Raising Enforcement, and Primary Prevention Over Time," Dynamic Modeling and Econometrics in Economics and Finance, in: Herbert Dawid & Karl F. Doerner & Gustav Feichtinger & Peter M. Kort & Andrea Seidl (ed.), Dynamic Perspectives on Managerial Decision Making, pages 11-35, Springer.
  • Handle: RePEc:spr:dymchp:978-3-319-39120-5_2
    DOI: 10.1007/978-3-319-39120-5_2
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:dymchp:978-3-319-39120-5_2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.