YEARS

2009-2012

AUTHORS

Todd A. Olmstead

TITLE

Estimating the Price Elasticities of Demand for Illicit Drugs

ABSTRACT

DESCRIPTION (provided by applicant): When evaluating the effectiveness of alternative policies aimed at reducing the cost of illicit drug use, two pieces of information are required: (1) the impact of the policies on drug prices faced by users, and (2) the change in users'demand for drugs associated with a given change in drug prices (i.e., the price elasticity of demand). However, few studies report estimates of the price elasticities of demand for illicit drugs. Moreover, although the scientific literature presumes that demand elasticities depend on other factors, including treatment status, little evidence exists to support these presumptions. The planned research will combine novel ambulatory data collection methods with a within-subjects design to estimate demand elasticities in both real-world and laboratory settings. Two groups of heroin users (N = 60 in each group), varying by treatment status, will report on their daily drug purchases during two waves of data collection using cell phones. Each wave will last two weeks, and consecutive waves will be separated by six months. An interactive voice response system will call subjects daily during each wave to collect information on (1) the types of drugs purchased for personal consumption, (2) the amounts purchased, (3) the expected purity/quality of the drugs, and (4) prices paid for each purchase since the last call. Real-world demand elasticities for heroin, cocaine, valium, alcohol and marijuana will be estimated separately for each subject group, thereby filling an important gap in the literature and informing future policy decisions. In addition, the subjects will participate in two laboratory experiments-one during each wave-in which they will make hypothetical drug purchases at varying drug prices. Demand elasticities from the laboratory experiments will be estimated and compared to their real-world counterparts, thereby testing the external validity of the laboratory method. If valid, this method can be used to estimate demand elasticities at much smaller expense than is typically incurred in real-world settings. PUBLIC HEALTH RELEVANCE: The purpose of this research is to determine how illicit drug users change their drug consumption patterns in response to changes in illicit drug prices and personal income. These behavioral changes will be quantified using elasticities of demand (cross-price, own-price, and income). This knowledge may ultimately help policymakers evaluate and improve policy interventions aimed at reducing the societal cost of illicit drug use in the US. For example, if treatment does substantially impact the demand for illicit drugs, this information may pave the way for further expansion of drug abuse treatment services. This application aims to provide new estimates from laboratory based and real-world based settings of the price elasticity of demand for illicit drugs using a novel sample of heroin and polydrug users, some of whom are currently in methadone treatment.

FUNDED PUBLICATIONS

  • The price elasticity of demand for heroin: Matched longitudinal and experimental evidence.
  • Health-care service utilization in substance abusers receiving contingency management and standard care treatments.
  • How to use: Click on a object to move its position. Double click to open its homepage. Right click to preview its contents.

    Download the RDF metadata as:   json-ld nt turtle xml License info


    22 TRIPLES      17 PREDICATES      23 URIs      9 LITERALS

    Subject Predicate Object
    1 grants:5a725d04a0749f6c02d1ec7349f458e9 sg:abstract DESCRIPTION (provided by applicant): When evaluating the effectiveness of alternative policies aimed at reducing the cost of illicit drug use, two pieces of information are required: (1) the impact of the policies on drug prices faced by users, and (2) the change in users'demand for drugs associated with a given change in drug prices (i.e., the price elasticity of demand). However, few studies report estimates of the price elasticities of demand for illicit drugs. Moreover, although the scientific literature presumes that demand elasticities depend on other factors, including treatment status, little evidence exists to support these presumptions. The planned research will combine novel ambulatory data collection methods with a within-subjects design to estimate demand elasticities in both real-world and laboratory settings. Two groups of heroin users (N = 60 in each group), varying by treatment status, will report on their daily drug purchases during two waves of data collection using cell phones. Each wave will last two weeks, and consecutive waves will be separated by six months. An interactive voice response system will call subjects daily during each wave to collect information on (1) the types of drugs purchased for personal consumption, (2) the amounts purchased, (3) the expected purity/quality of the drugs, and (4) prices paid for each purchase since the last call. Real-world demand elasticities for heroin, cocaine, valium, alcohol and marijuana will be estimated separately for each subject group, thereby filling an important gap in the literature and informing future policy decisions. In addition, the subjects will participate in two laboratory experiments-one during each wave-in which they will make hypothetical drug purchases at varying drug prices. Demand elasticities from the laboratory experiments will be estimated and compared to their real-world counterparts, thereby testing the external validity of the laboratory method. If valid, this method can be used to estimate demand elasticities at much smaller expense than is typically incurred in real-world settings. PUBLIC HEALTH RELEVANCE: The purpose of this research is to determine how illicit drug users change their drug consumption patterns in response to changes in illicit drug prices and personal income. These behavioral changes will be quantified using elasticities of demand (cross-price, own-price, and income). This knowledge may ultimately help policymakers evaluate and improve policy interventions aimed at reducing the societal cost of illicit drug use in the US. For example, if treatment does substantially impact the demand for illicit drugs, this information may pave the way for further expansion of drug abuse treatment services. This application aims to provide new estimates from laboratory based and real-world based settings of the price elasticity of demand for illicit drugs using a novel sample of heroin and polydrug users, some of whom are currently in methadone treatment.
    2 sg:endYear 2012
    3 sg:fundingAmount 406417.0
    4 sg:fundingCurrency USD
    5 sg:hasContribution contributions:4a96a2965fc0c047941dc093f04d3c66
    6 sg:hasFieldOfResearchCode anzsrc-for:11
    7 anzsrc-for:1117
    8 anzsrc-for:14
    9 anzsrc-for:1402
    10 anzsrc-for:1403
    11 sg:hasFundedPublication articles:13ed0b2d5ccebd3f048020d81b864fea
    12 articles:450c573453caebab33c8ae97a6dc6c01
    13 sg:hasFundingOrganization grid-institutes:grid.420090.f
    14 sg:hasRecipientOrganization grid-institutes:grid.22448.38
    15 sg:language English
    16 sg:license http://scigraph.springernature.com/explorer/license/
    17 sg:scigraphId 5a725d04a0749f6c02d1ec7349f458e9
    18 sg:startYear 2009
    19 sg:title Estimating the Price Elasticities of Demand for Illicit Drugs
    20 sg:webpage http://projectreporter.nih.gov/project_info_description.cfm?aid=7914358
    21 rdf:type sg:Grant
    22 rdfs:label Grant: Estimating the Price Elasticities of Demand for Illicit Drugs
    HOW TO GET THIS DATA PROGRAMMATICALLY:

    JSON-LD is a popular JSON format for linked data.

    curl -H 'Accept: application/ld+json' 'http://scigraph.springernature.com/things/grants/5a725d04a0749f6c02d1ec7349f458e9'

    N-Triples is a line-based linked data format ideal for batch operations .

    curl -H 'Accept: application/n-triples' 'http://scigraph.springernature.com/things/grants/5a725d04a0749f6c02d1ec7349f458e9'

    Turtle is a human-readable linked data format.

    curl -H 'Accept: text/turtle' 'http://scigraph.springernature.com/things/grants/5a725d04a0749f6c02d1ec7349f458e9'

    RDF/XML is a standard XML format for linked data.

    curl -H 'Accept: application/rdf+xml' 'http://scigraph.springernature.com/things/grants/5a725d04a0749f6c02d1ec7349f458e9'






    Preview window. Press ESC to close (or click here)


    ...