IDEAS home Printed from https://ideas.repec.org/p/wpa/wuwpmi/0111003.html
   My bibliography  Save this paper

Pain

Author

Listed:
  • Filip Palda

    (Ecole nationale d'administration publique in Montreal)

Abstract

Painkilling drugs produce a good called relief which reduces the fixed level of bad (pain) the individual is endowed with. These drugs have the side-effect of reducing the utility the individual gets from consuming goods. This means that the shadow price of relief counts not only the cost of drugs and their ability to reduce pain, but also the undesired reduction in pleasure from consuming goods. The tradeoff between goods and relief is non-linear and convex even for painkilling drugs that have a linear effect on pain. Small increases in pain may push the individual to a corner where painkilling drugs dominate his life. This seeming dependence on the drug has nothing to do with addiction or habit formation, but is a consequence of how consumption of these drugs changes the shadow prices of goods and relief.

Suggested Citation

  • Filip Palda, 2001. "Pain," Microeconomics 0111003, EconWPA.
  • Handle: RePEc:wpa:wuwpmi:0111003
    Note: Type of Document - PDF; prepared on IBM PC; to print on HP/PostScript; pages: 19; figures: included. PDF document can be viewed or printed
    as

    Download full text from publisher

    File URL: http://econwpa.repec.org/eps/mic/papers/0111/0111003.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Becker, Gary S & Tomes, Nigel, 1976. "Child Endowments and the Quantity and Quality of Children," Journal of Political Economy, University of Chicago Press, vol. 84(4), pages 143-162, August.
    2. Thomas C. Buchmueller & Samuel H. Zuvekas, 1998. "Drug use, drug abuse, and labour market outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 7(3), pages 229-245.
    3. French, Michael T. & Zarkin, Gary A., 1995. "Is moderate alcohol use related to wages? Evidence from four worksites," Journal of Health Economics, Elsevier, vol. 14(3), pages 319-344, August.
    4. Boyer, Marcel, 1983. "Rational demand and expenditures patterns under habit formation," Journal of Economic Theory, Elsevier, vol. 31(1), pages 27-53, October.
    5. Andrew M. Gill & Robert J. Michaels, 1992. "Does Drug Use Lower Wages?," ILR Review, Cornell University, ILR School, vol. 45(3), pages 419-434, April.
    6. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762, March.
    7. 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.
    8. Suranovic, Steven M. & Goldfarb, Robert S. & Leonard, Thomas C., 1999. "An economic theory of cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 1-29, January.
    9. Zarkin, Gary A. & French, Michael T. & Mroz, Thomas & Bray, Jeremy W., 1998. "Alcohol use and wages: New results from the national household survey on drug abuse," Journal of Health Economics, Elsevier, vol. 17(1), pages 53-68, January.
    10. Stigler, George J & Becker, Gary S, 1977. "De Gustibus Non Est Disputandum," American Economic Review, American Economic Association, vol. 67(2), pages 76-90, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Pain; addiction; drugs; household production;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpmi:0111003. 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: (EconWPA). General contact details of provider: http://econwpa.repec.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.