Why the DEA STRIDE Data are Still Useful for Understanding Drug Markets
In 2001, use of the STRIDE data base for the purposes of analyzing drug prices and the impact of public policies on drug markets came under serious attack by the National Research Council (Manski et al., 2001; Horowitz, 2001). While some of the criticisms raised by the committee were valid, many of the concerns can be easily addressed through more careful use of the data. In this paper, we first disprove Horowitz's main argument that prices are different for observations collected by different agencies within a city. We then revisit other issues raised by the NRC and discuss how certain limitations can be easily overcome through the adoption of random coefficient models of drug prices and by paying serious attention to drug form and distribution levels. Although the sample remains a convenience sample, we demonstrate how construction of city-specific price and purity series that pay careful attention to the data and incorporate existing knowledge of drug markets (e.g. the expected purity hypothesis) are internally consistent and can be externally validated. The findings from this study have important implications regarding the utility of these data and the appropriateness of using them in economic analyses of supply, demand and harms.
|Date of creation:||Aug 2008|
|Date of revision:|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jeff DeSimone & Matthew C. Farrelly, 2003.
"Price and Enforcement Effects on Cocaine and Marijuana Demand,"
Western Economic Association International, vol. 41(1), pages 98-115, January.
- Jeff DeSimone & Matthew C. Farrelly, . "Price and Enforcement Effects on Cocaine and Marijuana Demand," Working Papers 0101, East Carolina University, Department of Economics.
- Grossman, Michael & Chaloupka, Frank J., 1998.
"The demand for cocaine by young adults: a rational addiction approach,"
Journal of Health Economics,
Elsevier, vol. 17(4), pages 427-474, August.
- Michael Grossman & Frank J. Chaloupka & Charles C. Brown, 1996. "The Demand for Cocaine by Young Adults: A Rational Addiction Approach," NBER Working Papers 5713, National Bureau of Economic Research, Inc.
- Horowitz J.L., 2001. "Should the DEAs STRIDE Data Be Used for Economic Analyses of Markets for Illegal Drugs?," Journal of the American Statistical Association, American Statistical Association, vol. 96, pages 1254-1271, December.
- Jeffrey A. Miron, 2003.
"The Effect of Drug Prohibition on Drug Prices: Evidence from the Markets for Cocaine and Heroin,"
The Review of Economics and Statistics,
MIT Press, vol. 85(3), pages 522-530, August.
- Jeffrey A. Miron, 2003. "The Effect of Drug Prohibition on Drug Prices: Evidence from the Markets for Cocaine and Heroin," NBER Working Papers 9689, National Bureau of Economic Research, Inc.
- Jonathan P. Caulkins, 1997. "Modeling the Domestic Distribution Network for Illicit Drugs," Management Science, INFORMS, vol. 43(10), pages 1364-1371, October.
- Dave, Dhaval, 2006.
"The effects of cocaine and heroin price on drug-related emergency department visits,"
Journal of Health Economics,
Elsevier, vol. 25(2), pages 311-333, March.
- Dhaval Dave, 2004. "The Effects of Cocaine and Heroin Prices on Drug-Related Emergency Department Visits," NBER Working Papers 10619, National Bureau of Economic Research, Inc.
- Saffer, Henry & Chaloupka, Frank, 1999.
"The Demand for Illicit Drugs,"
Western Economic Association International, vol. 37(3), pages 401-11, July.
- Caulkins Jonathan P., 1995. "Domestic Geographic Variation in Illicit Drug Prices," Journal of Urban Economics, Elsevier, vol. 37(1), pages 38-56, January.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:14224. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()
If references are entirely missing, you can add them using this form.