Publication at First Faculty of Medicine |
2006
Abstract
An economic overview of drug matters provides us with information on how drug users respond to changes in drug prices. Economic aspects of drug policy then differ in whether the demand for addictive substances is price-elastic or inelastic.
Supposing that the demand for drugs is price elastic leads to the support of a liberal drug policy, while price inelasticity is linked to prohibition. The price elasticity of demand is explained by the theory of rational addiction, which also implies why monetary aspects can be more relevant to young people than preventive education.
The work is aimed at both non-economists who have not encountered economic aspects of drug policy before and at economists who are not familiar with the topic of drugs.