Cannabis Prices and Dynamics of Cannabis Use

CentER Discussion Paper No. 2005-52

45 Pages Posted: 16 May 2005

See all articles by Jan C. van Ours

Jan C. van Ours

Tilburg University - Department of Economics; University of Melbourne - Department of Economics

Jenny Williams

University of Melbourne - Department of Economics

Multiple version iconThere are 2 versions of this paper

Date Written: March 2005

Abstract

This paper uses duration models and self-reported cannabis histories from young Australians to study the dynamics of cannabis use. We find that low cannabis prices are associated with early initiation into cannabis use. While the decision to quit does not appear to be directly influenced by price, we find that the younger an individual is when they start using cannabis the less likely they are to quit. Therefore, low cannabis prices lead to early use and because of that they lead to a low quit rate and hence a longer duration of use.

Keywords: Cannabis use, cannabis prices, age of initiation

JEL Classification: C41, D12, I19

Suggested Citation

van Ours, Jan C. and Williams, Jenny, Cannabis Prices and Dynamics of Cannabis Use (March 2005). CentER Discussion Paper No. 2005-52. Available at SSRN: https://ssrn.com/abstract=721383 or http://dx.doi.org/10.2139/ssrn.721383

Jan C. Van Ours (Contact Author)

Tilburg University - Department of Economics ( email )

P.O. Box 90153
Tilburg, 5000 LE
Netherlands
+31 13 466 2880 (Phone)
+31 13 466 3042 (Fax)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

Jenny Williams

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

HOME PAGE: http://www.economics.unimelb.edu.au/staffprofile/jwilliams.htm

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