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Demand for Narcotics in Thailand, with Policy Implications

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  • Chia-Lin Chang

    (Department of Applied Economics, Department of Finance, National Chung Hsing University, Taichung)

  • Renu Sukharomana

Abstract

The paper examines the demand for narcotic drugs, based on Becker (1968), as purported rational behavior of human beings. The results from sampling surveys in eight provinces in Thailand in 2014, representing nationwide drug users/addicts, show that the demand for narcotics (amphetamines, ice drug, and marijuana) are price inelastic (between -0.533 and -0.701), as well as normal goods. The key econometric coefficients in models A and B are 0.192 and 0.0467, respectively, and an increase in income will lead to an increase in the demand for narcotics. In addition, factors affecting the demand for narcotics are the age and age squared of the user, friendship, family member relationship, social relationship, reasons for drug use, risk behavior, and expected punishment. Public policy implications are also proposed and analysed.

Suggested Citation

  • Chia-Lin Chang & Renu Sukharomana, 2017. "Demand for Narcotics in Thailand, with Policy Implications," Journal of Reviews on Global Economics, Lifescience Global, vol. 6, pages 279-284.
    • Handle: RePEc:lif:jrgelg:v:6:y:2017:p:279-284
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    References listed on IDEAS

    as
    1. 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.
    2. Jeffrey Fagan & Alex R. Piquero, 2007. "Rational Choice and Developmental Influences on Recidivism Among Adolescent Felony Offenders," Journal of Empirical Legal Studies, John Wiley & Sons, vol. 4(4), pages 715-748, December.
    3. 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.
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    Cited by:

    1. A. Ramirez-Hassan & C. Gomez & S. Velasquez & K. Tangarife, 2023. "Marijuana on Main Streets? The Story Continues in Colombia: An Endogenous Three-part Model," Papers 2306.10031, arXiv.org.

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    More about this item

    Keywords

    Price elasticity of demand; Narcotics; Amphetamines; Ice drug; Marijuana; Policy implications.;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • Q21 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Demand and Supply; Prices

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