|
After experiencing a period of rapid decline between 1986 and
1994, cocaine use is once again on the rise in the United States. The increased
prevalence of use among college students is particularly troubling because of
its potential impact on human capital acquisition and long-term labor market
success. Merging information on the price of cocaine and marijuana from the
U.S. Drug Enforcement Agency with data on cocaine use from the College Alcohol
Study, we investigate the demand for cocaine in the college population. We find
evidence that participation in cocaine use by college students is responsive
to changes in the price of cocaine and marijuana and that cocaine and marijuana
are economic complements for this population. Further investigation revealed
significant differences in the demand for cocaine by those less than age 21
and those at least age 21, years, with the younger age group being more responsive
to changes in the price of cocaine. No difference is found, however, in the
demand for cocaine across gender.
Keywords: Illicit Drugs
|
