Three essays on the economics of substance use and abuse.
Item
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Title
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Three essays on the economics of substance use and abuse.
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Identifier
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AAI3103099
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identifier
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3103099
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Creator
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Dave, Dhaval M.
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Contributor
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Adviser: Michael Grossman
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Date
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2003
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Language
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English
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Publisher
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City University of New York.
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Subject
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Economics, General | Health Sciences, General
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Abstract
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In light of the substantial costs associated with substance abuse, the demand for cigarettes, alcohol, and illicit drugs has received much attention from economists recently. However, these studies have largely overlooked groups, such as the mentally ill or arrestees, that are hardcore users and consume most of the cigarettes, drugs, and alcohol. One objective of this study is to empirically determine the responsiveness of these heavy users to price. The second is to analyze the empirical link between substance abuse and suicide. The first essay employs the National Comorbidity Survey (NCS) to analyze the demand for alcohol, cigarettes, and cocaine among the mentally ill. The results show that mentally ill individuals are 26 percent more likely to consume alcohol, 66 percent more likely to consume cocaine, and 89 percent more likely to consume cigarettes. They are also found to be price responsive. The price elasticity for alcohol participation is estimated at -0.49, for cocaine -0.20, and for cigarettes -0.66. The second essay employs objective indicators of drug use from Drug Use Forecasting and the Drug Abuse Warning Network. Results indicate that for arrestees the own-price cocaine participation elasticity is -0.23, and for heroin -0.08. Results show that the own-price elasticity of the general probability of a cocaine related ED episode is -0.33, and for a heroin related episode -0.16. The key finding that emerges is that price matters, even for hardcore users. These results provide additional justification for higher taxes, penalties, and supply reduction activities since such policies can effectively dissuade high-participation groups. The third essay analyzes a serious cost associated with substance abuse by young adults: suicide. The existing literature documents a strong positive correlation between substance use and suicide. The NCS is employed to assess whether this correlation is driven by selection bias or represents a true causal effect. Diagnosed substance abuse disorders are found to have a positive causal impact on suicide attempts. Based on the earlier results, economic policies that raise the full price and deter even heavy substance use, combined with other screening and treatment programs, can reduce the youth suicide rate.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
