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A Theory of Relative Deprivation and Myopic Addiction

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Abstract

Myopic use of mind-altering substances is proposed to be equal to the product of the user’s current levels of relative-deprivation feeling and substance-tolerance. If initially this product is sufficiently large the user is trapped in a deprivation-use-addiction vicious cycle. There may be a relatively high addiction and socioeconomic position steady state and a relatively low one. If the users are initially located in the high steady state, an increase in treatment is clearly socially desirable. In contrast, the possible improvement of users’ socioeconomic position from increasing law-enforcement or socioeconomic opportunities might be dominated by a rise in users’ addiction level.

Suggested Citation

  • Levy, Amnon, 2006. "A Theory of Relative Deprivation and Myopic Addiction," Economics Working Papers wp06-20, School of Economics, University of Wollongong, NSW, Australia.
  • Handle: RePEc:uow:depec1:wp06-20
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    File URL: http://www.uow.edu.au/content/groups/public/@web/@commerce/@econ/documents/doc/uow012233.pdf
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    References listed on IDEAS

    as
    1. Levy, Amnon & Neri, Frank & Grass, Dieter, 2006. "Macroeconomic Aspects Of Substance Abuse: Diffusion, Productivity And Optimal Control," Macroeconomic Dynamics, Cambridge University Press, vol. 10(02), pages 145-164, April.
    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.
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    Keywords

    Relative deprivation; myopia; substance abuse; addiction;

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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