IDEAS home Printed from https://ideas.repec.org/a/bla/coecpo/v19y2001i2p150-161.html
   My bibliography  Save this article

State Drug Control Spending And Illicit Drug Participation

Author

Abstract

The purpose of this article is to estimate the effect of state criminal justice expenditures and state public health expenditures on deterring illicit drug use. The empirics are based on a demand‐and‐supply model of drug markets. The effect of a given expenditure on criminal justice or public health programs is dependent on the magnitude of the resulting shifts in the two functions and the demand price elasticity. A reduced form of the demand‐and‐supply model is also estimated. The data employed come from the 1990 and 1991 National Household Surveys on Drug Abuse (NHSDA). Data on state and local spending for drug‐related criminal justice and drug‐related public health programs were merged with the NHSDA. The main findings from the regression results are that drug control spending reduces drug use. However, the results suggest that for marijuana users, the marginal cost of drug control exceeds the social benefits of drug control. This may not be the case for users of other illicit drugs. Spending for drug enforcement by police and drug treatment is found most effective in deterring drug use. However, spending for correctional facilities is never significant, which suggests that a more efficient method of reducing drug use might be to reduce correctional facilities spending and increase spending on treatment.

Suggested Citation

  • H Saffer & FJ Chaloupka & D Dave, 2001. "State Drug Control Spending And Illicit Drug Participation," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 150-161, April.
  • Handle: RePEc:bla:coecpo:v:19:y:2001:i:2:p:150-161
    DOI: 10.1111/j.1465-7287.2001.tb00057.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1465-7287.2001.tb00057.x
    Download Restriction: no

    File URL: https://libkey.io/10.1111/j.1465-7287.2001.tb00057.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lee, Li Way, 1993. "Would Harassing Drug Users Work?," Journal of Political Economy, University of Chicago Press, vol. 101(5), pages 939-959, October.
    2. Grossman, Michael & Chaloupka, Frank J., 1998. "The demand for cocaine by young adults: a rational addiction approach," Journal of Health Economics, Elsevier, vol. 17(4), pages 427-474, August.
    3. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
    4. Smith, Richard J & Blundell, Richard W, 1986. "An Exogeneity Test for a Simultaneous Equation Tobit Model with an Application to Labor Supply," Econometrica, Econometric Society, vol. 54(3), pages 679-685, May.
    5. Anne Line Bretteville-Jensen & Matthew Sutton, 1996. "Under the influence of the market: an applied study of illicitly selling and consuming heroin," Working Papers 147chedp, Centre for Health Economics, University of York.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Swensen, Isaac D., 2015. "Substance-abuse treatment and mortality," Journal of Public Economics, Elsevier, vol. 122(C), pages 13-30.
    2. Pinka Chatterji & Sara Markowitz, 2000. "The Impact of Maternal Alcohol and Illicit Drug Use on Children's Behavior Problems: Evidence from the Children of the National Longitudinal Survey..," NBER Working Papers 7692, National Bureau of Economic Research, Inc.
    3. Dhaval Dave & Swati Mukerjee, 2011. "Mental health parity legislation, cost‐sharing and substance‐abuse treatment admissions," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 161-183, February.
    4. C. McDougall & M. Cohen & R. Swaray & A. Perry, 2008. "Benefit‐Cost Analyses of Sentencing," Campbell Systematic Reviews, John Wiley & Sons, vol. 4(1), pages 1-86.
    5. Carlos Dobkin & Nancy Nicosia, 2009. "The War on Drugs: Methamphetamine, Public Health, and Crime," American Economic Review, American Economic Association, vol. 99(1), pages 324-349, March.
    6. Clements, Kenneth W. & Daryal, Mert, 2005. "Exogenous shocks and related goods: Drinking and the legalisation of marijuana," Economics Letters, Elsevier, vol. 89(1), pages 101-106, October.
    7. Beth A. Freeborn & Brian McManus, 2007. "Substance Abuse Treatment and Motor Vehicle Fatalities," Working Papers 66, Department of Economics, College of William and Mary.
    8. Chatterji, Pinka & Markowitz, Sara, 2001. "The impact of maternal alcohol and illicit drug use on children's behavior problems: evidence from the children of the national longitudinal survey of youth," Journal of Health Economics, Elsevier, vol. 20(5), pages 703-731, September.
    9. Anne Bretteville-Jensen, 2006. "Drug Demand – Initiation, Continuation and Quitting," De Economist, Springer, vol. 154(4), pages 491-516, December.
    10. Juan Carlos Echeverry, 2004. "Colombia And The War On Drugs, How Short Is The Short Run?," Documentos CEDE 2133, Universidad de los Andes, Facultad de Economía, CEDE.
    11. Hope Corman & Kelly Noonan & Nancy E. Reichman & Dhaval Dave, 2004. "Demand for Illicit Drugs by Pregnant Women," NBER Working Papers 10688, National Bureau of Economic Research, Inc.
    12. Dhaval Dave, 2004. "Illicit Drug Use Among Arrestees and Drug Prices," NBER Working Papers 10648, National Bureau of Economic Research, Inc.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ziggy MacDonald, 2004. "What Price Drug Use? The Contribution of Economics to an Evidence‐Based Drugs Policy," Journal of Economic Surveys, Wiley Blackwell, vol. 18(2), pages 113-152, April.
    2. Henry Saffer & Frank Chaloupka, 1999. "State Drug Control and Illicit Drug Participation," NBER Working Papers 7114, National Bureau of Economic Research, Inc.
    3. Jeff DeSimone, 2002. "Illegal Drug Use and Employment," Journal of Labor Economics, University of Chicago Press, vol. 20(4), pages 952-977, October.
    4. Guilhem Bascle, 2008. "Controlling for endogeneity with instrumental variables in strategic management research," Post-Print hal-00576795, HAL.
    5. Carlos Dobkin & Nancy Nicosia, 2009. "The War on Drugs: Methamphetamine, Public Health, and Crime," American Economic Review, American Economic Association, vol. 99(1), pages 324-349, March.
    6. Syed Hasan & Ian Sheldon, 2016. "Credit Constraints, Technology Choice and Exports: A Firm-level Study for Latin American Countries," Review of Development Economics, Wiley Blackwell, vol. 20(2), pages 547-560, May.
    7. Desimone, Jeff, 2001. "The Effect of Cocaine Prices on Crime," Economic Inquiry, Western Economic Association International, vol. 39(4), pages 627-643, October.
    8. Craig A. Gallet, 2014. "Can Price Get The Monkey Off Our Back? A Meta‐Analysis Of Illicit Drug Demand," Health Economics, John Wiley & Sons, Ltd., vol. 23(1), pages 55-68, January.
    9. Silvia Tiezzi, 2005. "An empirical analysis of tobacco addiction in Italy," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 6(3), pages 233-243, September.
    10. Saleh S. Tabrizy, 2015. "An empirical assessment of the effects of trade in innovative tasks on innovation output," Southern Economic Journal, John Wiley & Sons, vol. 82(1), pages 307-334, July.
    11. Dave, Dhaval, 2006. "The effects of cocaine and heroin price on drug-related emergency department visits," Journal of Health Economics, Elsevier, vol. 25(2), pages 311-333, March.
    12. Auld, M. Christopher & Grootendorst, Paul, 2004. "An empirical analysis of milk addiction," Journal of Health Economics, Elsevier, vol. 23(6), pages 1117-1133, November.
    13. Joshi, Shareen, 2004. "Female Household-Headship in Rural Bangladesh: Incidence, Determinants and Impact on Children's Schooling," Center Discussion Papers 28424, Yale University, Economic Growth Center.
    14. repec:hal:journl:dumas-00802135 is not listed on IDEAS
    15. Jörg Schwiebert, 2015. "Estimation and interpretation of a Heckman selection model with endogenous covariates," Empirical Economics, Springer, vol. 49(2), pages 675-703, September.
    16. Skott, Peter & Thorlund Jepsen, Gunnar, 2002. "Paradoxical effects of drug policy in a model with imperfect competition and switching costs," Journal of Economic Behavior & Organization, Elsevier, vol. 48(4), pages 335-354, August.
    17. Henry Saffer & Dhaval Dave, 2005. "Mental Illness and the Demand for Alcohol, Cocaine, and Cigarettes," Economic Inquiry, Western Economic Association International, vol. 43(2), pages 229-246, April.
    18. Vella, Francis & Verbeek, Marno, 1999. "Two-step estimation of panel data models with censored endogenous variables and selection bias," Journal of Econometrics, Elsevier, vol. 90(2), pages 239-263, June.
    19. Andrew M. Jones & José M. Labeaga, 2003. "Individual heterogeneity and censoring in panel data estimates of tobacco expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(2), pages 157-177.
    20. Lisa Powell & Jenny Williams & Henry Wechsler, 2004. "Study habits and the level of alcohol use among college students," Education Economics, Taylor & Francis Journals, vol. 12(2), pages 135-149.
    21. Dhaval Dave, 2004. "Illicit Drug Use Among Arrestees and Drug Prices," NBER Working Papers 10648, National Bureau of Economic Research, Inc.

    More about this item

    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:bla:coecpo:v:19:y:2001:i:2:p:150-161. See general information about how to correct material in RePEc.

    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 bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/weaaaea.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.