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Modelling Illegal Drug Participation in Australia

Author

Listed:
  • 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)

Abstract

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.

Suggested Citation

  • Sarah Brown & Mark N Harris & Preety Srivastava, 2013. "Modelling Illegal Drug Participation in Australia," Bankwest Curtin Economics Centre Working Paper series WP1303, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
  • Handle: RePEc:ozl:bcecwp:wp1303
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Sarah Brown & Mark N Harris & Jake Prendergast & Preety Srivastava, 2015. "Pharmaceutical Drug Misuse, Industry of Employment and Occupation," Bankwest Curtin Economics Centre Working Paper series WP1501, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.

    More about this item

    Keywords

    Discrete data; illegal drug consumption; inflated responses; mis-reporting;

    JEL classification:

    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
    • D1 - Microeconomics - - Household Behavior
    • I1 - Health, Education, and Welfare - - Health

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