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Cannabis Prices and Dynamics of Cannabis Use

Author Info

  • van Ours, Jan C
  • Williams, Jenny

Abstract

This paper uses duration models and self-reported cannabis histories from young Australians to study the dynamics of cannabis use. We find that low cannabis prices are associated with early initiation into cannabis use. While the decision to quit does not appear to be directly influenced by price, we find that the younger an individual is when they start using cannabis the less likely they are to quit. Therefore, low cannabis prices lead to early use and because of that they lead to a low quit rate and hence a longer duration of use.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 4991.

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Date of creation: Apr 2005
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Handle: RePEc:cpr:ceprdp:4991
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Keywords: age of initiation; cannabis prices; cannabis use;

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Find related papers by JEL classification:
  • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
  • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
  • I19 - Health, Education, and Welfare - - Health - - - Other

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  1. Clements, Kenneth W., 2004. "Three facts about marijuana prices," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 48(2), June.
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  5. van Ours, Jan C & Williams, Jenny, 2005. "Cannabis Prices and Dynamics of Cannabis Use," CEPR Discussion Papers 4991, C.E.P.R. Discussion Papers.
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  11. Patrick M. O'Malley & Michael Grossman & Frank J. Chaloupka, 2001. "Marijuana and Youth," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 271-326 National Bureau of Economic Research, Inc.
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  16. Ángel López Nicolás, 2001. "How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey," Working Papers, Research Center on Health and Economics 548, Department of Economics and Business, Universitat Pompeu Fabra.
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  21. Martin Forster & Andrew M. Jones, . "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York.
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As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Review: Drugs – Without the Hot Air (David Nutt)
    by Sam Watson in The Academic Health Economists' Blog on 2013-02-14 12:53:56
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