IDEAS home Printed from https://ideas.repec.org/a/bla/scandj/v105y2003i4p661-679.html
   My bibliography  Save this article

Heroin Consumption, Prices and Addiction: Evidence from Self‐reported Panel Data

Author

Listed:
  • Anne Line Bretteville‐Jensen
  • Erik Biørn

Abstract

Estimation models of drug demand should encompass the aspect of addiction. Here, we consider two static panel data regression models and two cross‐section models with lags or leads in drug consumption as additional regressors. Heroin injectors attending a needle exchange service in Oslo were interviewed twice, with a one‐year interval. Despite our relatively small sample, we obtain statistically significant price and income responses for nearly all of the models and specifications applied. The sample is split by dealing status, with dealers obtaining price elasticities in the range of [−0.15, −1.51] and non‐dealers [−0.71, −1.69]. Somewhat surprisingly, the estimates of the variance of the latent individual‐specific variable are rather low in the panel data models, although higher for non‐dealers than for dealers.

Suggested Citation

  • Anne Line Bretteville‐Jensen & Erik Biørn, 2003. "Heroin Consumption, Prices and Addiction: Evidence from Self‐reported Panel Data," Scandinavian Journal of Economics, Wiley Blackwell, vol. 105(4), pages 661-679, December.
    • Handle: RePEc:bla:scandj:v:105:y:2003:i:4:p:661-679
    DOI: 10.1111/j.0347-0520.2003.00008.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.0347-0520.2003.00008.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.0347-0520.2003.00008.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
    ---><---

    Citations

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


    Cited by:

    1. Jeffrey Clemens, 2008. "Opium in Afghanistan: Prospects for the Success of Source Country Drug Control Policies," Journal of Law and Economics, University of Chicago Press, vol. 51(3), pages 407-432, August.
    2. Hans Melberg & Andrew Jones & Anne Bretteville-Jensen, 2010. "Is cannabis a gateway to hard drugs?," Empirical Economics, Springer, vol. 38(3), pages 583-603, June.
    3. Kaili Shen & David Giles, 2006. "Rational exuberance at the mall: addiction to carrying a credit card balance," Applied Economics, Taylor & Francis Journals, vol. 38(5), pages 587-592.
    4. Lucas Marín Llanes & Hernando Zuleta, 2022. "Myths of drug consumption decriminalization: effects of Portuguese decriminalization on violent and drug use mortality," Documentos CEDE 20328, Universidad de los Andes, Facultad de Economía, CEDE.
    5. Olmstead, Todd A. & Alessi, Sheila M. & Kline, Brendan & Pacula, Rosalie Liccardo & Petry, Nancy M., 2015. "The price elasticity of demand for heroin: Matched longitudinal and experimental evidence," Journal of Health Economics, Elsevier, vol. 41(C), pages 59-71.
    6. Robert E. Marks, 2013. "Increasing Marginal Revenue and Demand Elasticity," Discussion Papers 2013-27, School of Economics, The University of New South Wales.
    7. Anne Bretteville-Jensen, 2006. "Drug Demand – Initiation, Continuation and Quitting," De Economist, Springer, vol. 154(4), pages 491-516, December.
    8. Johanna Catherine Maclean & Jonathan H. Cantor & Rosalie Liccardo Pacula, 2015. "Economic downturns and substance abuse treatment: Evidence from admissions data," DETU Working Papers 1504, Department of Economics, Temple University.

    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:scandj:v:105:y:2003:i:4:p:661-679. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-9442 .

    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.