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Do Youths Substitute Alcohol and Marijuana? Some Econometric Evidence

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Author Info
Frank J. Chaloupka
Adit Laixuthai

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Abstract

Data from the 1982 and 1989 Monitoring the Future Surveys are used to examine the substitutability of alcoholic beverages and marijuana among youths. Beer prices and minimum legal drinking ages are used as measures of the full price of alcohol, while an indicator of marijuana decriminalization and its money price capture the full price of marijuana. Results indicate that drinking frequency and heavy drinking episodes are negatively related to beer prices, but positively related to the full price of marijuana. The implications of this substitution for one of the consequences of youth substance abuse, driving while intoxicated, is examined using information on youth non-fatal accidents taken from the surveys and on youth fatal motor vehicle accidents constructed from the Fatal Accident Reporting System. These results indicate that the net effect of an increase in the full price of alcoholic beverages on the probability of a youth traffic crash is negative. However, the opposite is found for marijuana. That is, the results imply that the reduction in accidents resulting from substitution away from alcoholic beverages and other intoxicating substances to marijuana as its full price is lower more than offsets the increase in accidents related to marijuana use.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 4662.

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Date of creation: Feb 1994
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Handle: RePEc:nbr:nberwo:4662

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I1 - Health, Education, and Welfare - - Health

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  1. Sen, Bisakha & Agarwal, Rajshree & Hofler, Richard, 2002. "Teenage Indulgence in Cigarettes, Alcohol and Marijuana: Evidence of a "Gateway" Effect," Working Papers 02-0103, University of Illinois at Urbana-Champaign, College of Business. [Downloadable!]
  2. Ours, Jan C. van, 2005. "Cannabis use when it's legal," Discussion Paper 12, Tilburg University, Center for Economic Research. [Downloadable!]
  3. Xueyan Zhao & Mark Harris & Preety Ramful, 2004. "Alcohol Consumption in Australia: An Application of the Ordered Generalised Extreme Value Model," Econometric Society 2004 Australasian Meetings 301, Econometric Society. [Downloadable!]
  4. R. L. Pacula & M. Grossman & F. J. Chaloupka & P. M. O'Malley & L. Johnston & M. C. Farrelly, 2000. "Marijuana and Youth," NBER Working Papers 7703, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Rosalie Liccardo Pacula & Michael Grossman & Frank J. Chaloupka & Patrick M. O’Malley & Lloyd D. Johnston & Matthew C. Farrelly, 2001. "Marijuana and Youth," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 271-326 National Bureau of Economic Research, Inc. [Downloadable!]
  5. Stephen L. Mehay & Rosalie Liccardo Pacula, 1999. "The Effectiveness of Workplace Drug Prevention Policies: Does 'Zero Tolerance' Work?," NBER Working Papers 7383, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Kenneth W. Clements & Xueyan Zhao, 2005. "Economic Aspects of Marijuana," Economics Discussion / Working Papers 05-28, The University of Western Australia, Department of Economics. [Downloadable!]
  7. Michael Grossman & Frank J. Chaloupka & Charles C. Brown, 1999. "The Demand for Cocaine by Young Adults: A Rational Addiction Approach," NBER Working Papers 5713, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  8. Jeffrey DeSimone, 1999. "Illegal Drug Use and Labor Supply," Working Papers 9906, East Carolina University, Department of Economics. [Downloadable!]
  9. Kenneth W. Clements, 2004. "Three Facts About Marijuana Prices," Economics Discussion / Working Papers 04-06, The University of Western Australia, Department of Economics. [Downloadable!]
  10. Angela K. Dills & Jeffrey K. Miron, 2003. "Alcohol Prohibition and Cirrhosis," NBER Working Papers 9681, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Dhaval Dave & Henry Saffer, 2007. "Risk Tolerance and Alcohol Demand Among Adults and Older Adults," NBER Working Papers 13482, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Tetsuji Yamada & Michael Kendix & Tadashi Yamada, 1993. "The Impact of Alcohol Consumption and Marijuana Use on High School Graduation," NBER Working Papers 4497, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. M. Christopher Auld, 1998. "Wages, Alcohol Use, and Smoking: Simultaneous Estimates," HEW 9808001, EconWPA. [Downloadable!]
  14. Tauchmann, Harald & Göhlmann, Silja & Requate, Till & Schmidt, Christoph M., 2008. "Tobacco and Alcohol: Complements or Substitutes? A Structural Model Approach," IZA Discussion Papers 3412, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  15. Harald Tauchmann & Silja Göhlmann & Till Requate & Chistoph M. Schmidt, 2006. "Tobacco and Alcohol: Complements or Substitutes? - A Statistical Guinea Pig Approach," RWI Discussion Papers 0052, Rheinisch-Westfälisches Institut für Wirtschaftsforschung. [Downloadable!]
    Other versions:
  16. Michael Grossman & Sarah Markowitz, 2005. "I Did What Last Night? Adolescent Risky Sexual Behaviors and Substance Abuse," Eastern Economic Journal, Eastern Economic Association, vol. 31(3), pages 383-405, Summer. [Downloadable!]
  17. Nancy M. Petry & Warren K. Bickel, 1998. "A Behavioral Economic Analysis of Polydrug Abuse in Heroin Addicts," NBER Working Papers 6415, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  18. Sara Markowitz & John Tauras, 2006. "Even For Teenagers, Money Does Not Grow on Trees: Teenage Substance Use and Budget Constraints," NBER Working Papers 12300, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  19. Henry Saffer & Frank Chaloupka, 1998. "Demographic Differentials in the Demand for Alcohol and Illicit Drugs," NBER Working Papers 6432, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  20. Matthew C. Farrelly & Jeremy W. Bray & Gary A. Zarkin & Brett W. Wendling & Rosalie Liccardo Pacula, 1999. "The Effects of Prices and Policies on the Demand for Marijuana: Evidence from the National Household Surveys on Drug Abuse," NBER Working Papers 6940, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  21. Mikael Bask & Maria Melkersson, 2004. "Rationally addicted to drinking and smoking?," Applied Economics, Taylor and Francis Journals, vol. 36(4), pages 373-381, March. [Downloadable!] (restricted)
    Other versions:
  22. Rosalie Liccardo Pacula, 1998. "Adolescent Alcohol and Marijuana Consumption: Is There Really a Gateway Effect?," NBER Working Papers 6348, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  23. Christopher Carpenter & Philip J. Cook, 2007. "Cigarette Taxes and Youth Smoking: New Evidence from National, State, & Local Youth Risk Behavior Surveys," NBER Working Papers 13046, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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