The Effects of Prices and Policies on the Demand for Marijuana:  Evidence from the National Household Surveys on Drug Abuse

Farrelly, Matthew C.; Bray, Jeremy; Zarkin, Gary A.; Wendling, Brett W.; Pacula, Rosalie Liccardo

doi:10.3386/w6940

Cited by 54 publications

(56 citation statements)

References 12 publications

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“…While a number of studies have found evidence of complementarity between marijuana and alcohol (Pacula 1998;Farrelly et al 1999;Williams et al 2004), others lend support to the hypothesis that marijuana and alcohol are substitutes. For instance, Chaloupka and Laixuthai 4 A large body of research in epidemiology attempts to assess the effects of substance use based on observed THC and alcohol levels in the blood of drivers who have been in accidents.…”

Section: The Relationship Between Marijuana and Alcoholmentioning

confidence: 99%

Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption

Anderson

Hansen²,

Rees

2013

The Journal of Law and Economics

352

401

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To date, 17 states have passed medical marijuana laws, yet very little is known about their effects. The current study examines the relationship between the legalization of medical marijuana and traffic fatalities, the leading cause of death among Americans ages 5 through 34. The first full year after coming into effect, legalization is associated with an 8 to 11 percent decrease in traffic fatalities. The impact of legalization on traffic fatalities involving alcohol is larger and estimated with more precision than its impact on traffic fatalities that do not involve alcohol. Legalization is also associated with sharp decreases in the price of marijuana and alcohol consumption, a pattern of results consistent with the hypothesis that marijuana and alcohol are substitutes. Because alternative mechanisms cannot be ruled out, the negative relationship between legalization and alcohol-related traffic fatalities does not necessarily imply that driving under the influence of marijuana is safer than driving under the influence of alcohol.

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Section: The Relationship Between Marijuana and Alcoholmentioning

confidence: 99%

Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption

Anderson

Hansen²,

Rees

2013

The Journal of Law and Economics

352

401

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“…For instance, Farrelly et al (1999) examined the reduced-form relationship between more stringent anti-marijuana policies and marijuana use, while Thies and Register (1993), Saffer and Chaloupka (1999) These studies provide some evidence that marijuana use is sensitive to changes in policy.…”

Section: Introductionmentioning

confidence: 99%

Medical Marijuana Laws and Teen Marijuana Use

2012

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractWhile at least a dozen state legislatures are considering bills to allow the consumption of marijuana for medicinal purposes, the federal government has recently intensified its efforts to close medical marijuana dispensaries. Federal officials contend that the legalization of medical marijuana encourages teenagers to use marijuana and have targeted dispensaries operating within 1,000 feet of schools, parks and playgrounds. Using data from the national and state Youth Risk Behavior Surveys, the National Longitudinal Survey of Youth 1997 and the Treatment Episode Data Set, we estimate the relationship between medical marijuana laws and marijuana use. Our results are not consistent with the hypothesis that legalization leads to increased use of marijuana by teenagers.JEL Codes: K4, I1, D8

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“…9 Similar to what was reported for youth above, studies that focused more explicitly on the actual penalties imposed for possession of small amounts of marijuana and/or the enforcement risk of marijuana generally found changes in consumption associated with small differences in legal risks. Farrelly et al (1999) show that both higher average fines and greater enforcement risk are associated with lower past month prevalence rates among young adults using the [1991][1992][1993][1994]1996 NHSDA. Their models suggest that a 10% increase in the proportion of marijuana users arrested for possession would be associated with a 1.6% to 2.0% reduction in the prevalence of marijuana use among young adults (ages 21-30).…”

Section: Iiib a Review Of The Literature On Regular Use Of Marijuanamentioning

confidence: 99%

Examining the Impact of Marijuana Legalization on Marijuana Consumption: Insights from the Economics Literature

Pacula¹

2010

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A central question in the debate regarding the legalization of marijuana in California is whether consumption would rise and by how much. In this report, we review the economics literature which provides insights regarding how consumption might change and why. A key finding of the review is that the current state of the literature is limited, having not yet fully explored how average consumption among existing users will change in response to changes in price and legal risks. However, information regarding the prevalence of marijuana, both in terms of new users as well as regular users, is available. A review of this literature is considered in terms of the responsiveness of marijuana initiation, regular use and heavy use to changes in the price of marijuana, enforcement risk, decriminalization and other legal risks. From this review it is clear that total consumption will rise in response to legalization due to increases in the number of new users, increases in the number of regular and heavy users, and probable increases in the duration in which marijuana is consumed for average users. 2 I. IntroductionA vast literature has developed over the past twenty years examining the etiology of and factors influencing marijuana consumption. A variety of disciplines have contributed to the development of this literature, including sociology, psychology, epidemiology, criminology, and economics, all emphasizing different factors that are important for influencing the decision to use marijuana. The economics literature, in particular, has focused on examining the relative importance of changes in price and income as determinants of the decision to use marijuana and length of use careers. Now, with the current debate regarding the legalization of marijuana in California, the findings from this economics literature in particular have found themselves at the center of the debate, as it lends important insights into what could happen to marijuana consumption in California if the voters decide to legalize marijuana. Legalization is expected to significantly influence the monetary price people have to pay to obtain marijuana, as currently with the prohibition, there is a black market risk premium that is added to the cost of providing marijuana to the market and this risk premium will no longer exist (see Caulkins 2010 for a careful description of this). So, with the expected decline in the price consumers have to pay for marijuana, how is consumption likely to change?The price elasticity of demand is typically used by economists to describe how consumption changes in response to a change in the price of any good or service. In particular, it tells you the percent change in consumption associated with a 1% change in price, and is derived by examining small changes along a single market demand curve. Market demand curves represent the aggregation of individual choices of quantities of the good consumed at various price points that could be observed in the market, holding all non-price determinants of consumption constant...

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The Effects of Prices and Policies on the Demand for Marijuana: Evidence from the National Household Surveys on Drug Abuse

Cited by 54 publications

References 12 publications

Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption

Medical Marijuana Laws, Traffic Fatalities, and Alcohol Consumption

Medical Marijuana Laws and Teen Marijuana Use

Examining the Impact of Marijuana Legalization on Marijuana Consumption: Insights from the Economics Literature

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