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Can Price Get The Monkey Off Our Back? A Meta‐Analysis Of Illicit Drug Demand

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  • Craig A. Gallet
Abstract
Because of the increased availability of price data over the past 15 years, several studies have estimated the demand for illicit drugs, providing 462 estimates of the price elasticity. Results from estimating several meta‐regressions reveal that these price elasticity estimates are influenced by a number of study characteristics. For instance, the price elasticity differs across drugs, with its absolute value being smallest for marijuana, compared with cocaine and heroin. Furthermore, price elasticity estimates are sensitive to whether demand is modeled in the short‐run or the long‐run, measures of quantity and price, whether or not alcohol and other illicit drugs are included in the specification of demand, and the location of demand. However, a number of other factors, including the functional form of demand, several specification issues, the type of data and method used to estimate demand, and the quality of the publication outlet, have less influence on the price elasticity. Copyright © 2013 John Wiley & Sons, Ltd.

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  • 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.
    • Handle: RePEc:wly:hlthec:v:23:y:2014:i:1:p:55-68
    DOI: 10.1002/hec.2902
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    3. 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.
    4. Katsiaryna Bahamazava & Carla Marchese & Fabio Privileggi, 2023. "A Cournot Equilibrium between Dark Net Market and Street Market," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 79(4), pages 308-331.
    5. Mohammed AL-MAHISH, 2017. "Cigarette, Alcohol, and Drug Demand for Young Population," Expert Journal of Economics, Sprint Investify, vol. 5(2), pages 62-70.
    6. Casey B. Mulligan, 2020. "Prices and Federal Policies in Opioid Markets," Working Papers 2020-10, Becker Friedman Institute for Research In Economics.
    7. Casey B. Mulligan, 2020. "Prices and Federal Policies in Opioid Markets," NBER Working Papers 26812, National Bureau of Economic Research, Inc.
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