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Addictive Drug Use Management Policies In A Long‐Run Economic Model

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  • HARRY CLARKE
  • MARTIN BYFORD

Abstract

A model of illicit, addictive drug use is proposed when users have foresight. Impacts of drug use penalties, penalties on drug use‐related crime, support for drug user rehabilitation as well as the effects of health‐related, harm‐minimisation policies are analysed. In the short run, government policies impact only on the drug use intensities of existing addicted and casual users. Longer term policy‐induced user‐cost changes impact on new user and addict numbers through their effect on recruitment into addiction and quit dynamics. Effects of policies on user numbers, usage intensities and impacts on long‐run social costs are analysed over this long‐term horizon. The model provides a setting for analysing the long‐run effects of illicit drug management policies on the social costs of illicit drug use and allows assessment of drug use abstinence and harm minimisation policy tradeoffs.

Suggested Citation

  • Harry Clarke & Martin Byford, 2009. "Addictive Drug Use Management Policies In A Long‐Run Economic Model," Australian Economic Papers, Wiley Blackwell, vol. 48(2), pages 151-165, June.
    • Handle: RePEc:bla:ausecp:v:48:y:2009:i:2:p:151-165
    DOI: 10.1111/j.1467-8454.2009.00367.x
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    References listed on IDEAS

    as
    1. Harry Clarke, 2000. "Addictive Consumption under Conditions of Risk," The Economic Record, The Economic Society of Australia, vol. 76(234), pages 263-272, September.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters, in: Essays in the Economics of Crime and Punishment, pages 1-54, National Bureau of Economic Research, Inc.
    3. Harry Clarke, 2003. "Economic Analysis of Public Policies for Controlling Heroin Use," Australian Economic Papers, Wiley Blackwell, vol. 42(2), pages 234-252, June.
    4. repec:bla:ecorec:v:76:y:2000:i:234:p:263-72 is not listed on IDEAS
    5. Saffer, Henry & Chaloupka, Frank, 1999. "The Demand for Illicit Drugs," Economic Inquiry, Western Economic Association International, vol. 37(3), pages 401-411, July.
    6. MacCoun,Robert J. & Reuter,Peter, 2001. "Drug War Heresies," Cambridge Books, Cambridge University Press, number 9780521799973, September.
    7. Gernot Tragler & Jonathan P. Caulkins & Gustav Feichtinger, 2001. "Optimal Dynamic Allocation of Treatment and Enforcement in Illicit Drug Control," Operations Research, INFORMS, vol. 49(3), pages 352-362, June.
    8. Harry Clarke, 2001. "Some Economics of Safe Injecting Rooms," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 34(1), pages 53-63, March.
    9. 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.
    10. Harry Clarke, 1999. "Public Provision of Heroin for Addicts," Agenda - A Journal of Policy Analysis and Reform, Australian National University, College of Business and Economics, School of Economics, vol. 6(3), pages 195-210.
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