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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. 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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