Working Paper: CEPR ID: DP4991
Authors: Jan C. van Ours; Jenny Williams
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: age of initiation; cannabis prices; cannabis use
JEL Codes: C41; D12; I19
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Lower cannabis prices (P22) | Earlier initiation into cannabis use (I21) |
| Earlier initiation into cannabis use (I21) | Lower quit rate (J26) |
| Lower cannabis prices (P22) | Longer durations of cannabis use (C41) |
| Earlier initiation into cannabis use (I21) | Longer durations of cannabis use (C41) |
| Age and education (I24) | Quitting decision (J26) |