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On Aging Cannabis Users: a Welfare Economics Analysis

Author

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  • Marco Rossi

    (Department of Social Sciences and Economics, Sapienza University of Rome (IT))

Abstract

In this paper we studied the implications for welfare of an increasing share of adults in the population of cannabis. This demographic process is already significant in Italy, which is leading European greying: a decrease in birth rate and youth, and an increasing proportion of older people in the general population. We make the hypothesis here that adult users are going through a process of social integration and normalization, by which they are changing their patterns of use and socio-economic status. In order to verify the empirical relevance of the share of adults and the above hypotheses, we interviewed a targeted, non- representative, sample of cannabis users, namely visitors at the biggest Italian cannabis fair. Our data suggest that the role and weight of adults in the cannabis market is quantitatively significant and qualitatively different from that of younger people. We analyzed the links between the aging issue and the views supporting cannabis market restrictions (defined as paternalism, economics externalities, and moral externalities). Finally, we developed a very stylized model to see how the benefit of cannabis market restrictions decreases as the share of adults in the cannabis user population increases.

Suggested Citation

  • Marco Rossi, 2019. "On Aging Cannabis Users: a Welfare Economics Analysis," Working Papers 11/19, Sapienza University of Rome, DISS.
    • Handle: RePEc:saq:wpaper:11/19
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    File URL: http://www.diss.uniroma1.it/sites/default/files/allegati/DiSSE_Rossi_wp11_2019.pdf
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    References listed on IDEAS

    as
    1. Fama, Eugene F, 1970. "Efficient Capital Markets: A Review of Theory and Empirical Work," Journal of Finance, American Finance Association, vol. 25(2), pages 383-417, May.
    2. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    3. Gary S. Becker & Kevin M. Murphy & Michael Grossman, 2006. "The Market for Illegal Goods: The Case of Drugs," Journal of Political Economy, University of Chicago Press, vol. 114(1), pages 38-60, February.
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    Cited by:

    1. Marco Rossi, 2020. "The cannabis social market," Public Finance Research Papers 43, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.

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    More about this item

    Keywords

    cannabis; aging; normalization; social integration; paternalism; externalities; welfare; regulation.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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