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Habit Persistence and Teen Sex: Could Increased Access to Contraception Have Unintended Consequences for Teen Pregnancies?

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  • Peter Arcidiacono
  • Ahmed Khwaja
  • Lijing Ouyang

Abstract

We develop a dynamic discrete-choice model of teen sex and pregnancy that incorporates habit persistence. Habit persistence has two sources here. The first is a “fixed cost” of having sex, which relates to a moral or psychological barrier that has been crossed the first time one has sex. The second is a “transition cost,” whereby once a particular relationship has progressed to sex, it is difficult to move back. We estimate significant habit persistence in teen sex, implying that the long-run effects of contraception policy may be different from their short-run counterparts, especially if the failure rate of contraception is sufficiently large. Programs that increase access to contraception are found to decrease teen pregnancies in the short run but increase them in the long run.

Suggested Citation

  • Peter Arcidiacono & Ahmed Khwaja & Lijing Ouyang, 2011. "Habit Persistence and Teen Sex: Could Increased Access to Contraception Have Unintended Consequences for Teen Pregnancies?," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(2), pages 312-325, November.
    • Handle: RePEc:taf:jnlbes:v:30:y:2011:i:2:p:312-325
    DOI: 10.1080/07350015.2011.652052
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    References listed on IDEAS

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    1. Ahmed W. Khwaja, 2001. "Health Insurance, Habits and Health Outcomes: A Dynamic Stochastic Model of Investment in Health," Computing in Economics and Finance 2001 166, Society for Computational Economics.
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    Cited by:

    1. Seth Richards‐Shubik, 2015. "Peer effects in sexual initiation: Separating demand and supply mechanisms," Quantitative Economics, Econometric Society, vol. 6(3), pages 663-702, November.
    2. Deza, Monica, 2015. "Is there a stepping stone effect in drug use? Separating state dependence from unobserved heterogeneity within and between illicit drugs," Journal of Econometrics, Elsevier, vol. 184(1), pages 193-207.

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