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Modelling Illegal Drug Participation in Australia

Listed author(s):
  • Sarah Brown

    ()

    (Department of Economics, University of Sheffield)

  • Mark N Harris

    ()

    (School of Economics and Finance, Curtin University)

  • Preety Srivastava

    ()

    (Department of Econometrics and Business Statistics, Monash University)

We contribute to the small, but important, literature exploring the incidence and implications of mis-reporting in survey data. Specifically, when modelling ?social bads such as illegal drug consumption, researchers are often faced with exceptionally low reported participation rates. We propose a modelling framework where firstly an individual decides whether to participate or not and, secondly for participants there is a subsequent decision to mis-report or not. We explore misreporting in the context of the consumption of a system of drugs and specify a multivariate inflated probit model. Compared to observed participation rates of 12, 3 and 1.3% (for marijuana, speed and cocaine, respectively) true participation rates are estimated to be some 5 percentage points higher for marijuana, and nearly double for cocaine. There was an estimated 36% (18%) percent chance that a cocaine (marijuana) user would mis-report their participation. Less evidence of mis-reporting was found for speed users.

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File URL: http://ftprepec.drivehq.com/ozl/bcecwp/downloads/WP1303.pdf
File Function: First version, 2013
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Paper provided by Bankwest Curtin Economics Centre (BCEC), Curtin Business School in its series Bankwest Curtin Economics Centre Working Paper series with number WP1303.

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Length: 42 pages
Date of creation: Jul 2013
Handle: RePEc:ozl:bcecwp:wp1303
Contact details of provider: Web page: http://business.curtin.edu.au/bcec
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