Addictive Consumption under Conditions of Risk

Harry Clarke

The Economic Record, 2000, vol. 76, issue 234, 263-272

Abstract: Addictive consumption involves health and other risks. This paper analyzes how such risks influence steady state consumption and equilibrium addiction. Mortality risks deter addictive consumption provided they are strongly addiction‐dependent. If however risks are addiction‐independent they may increase addictive consumption. Risks, which lead not to death but to large ongoing disutility, also deter addictive consumption provided they are strongly addiction‐dependent. Non‐steady state extensions of these results hold provided large enough disutility is associated with addiction‐dependent risk. Increasing addiction‐dependent risk and reducing addiction‐independent risk promotes the social objective of reducing addictive consumption.

Date: 2000
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
https://doi.org/10.1111/j.1475-4932.2000.tb00022.x

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ecorec:v:76:y:2000:i:234:p:263-272

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0013-0249

Access Statistics for this article

The Economic Record is currently edited by Paul Miller, Glenn Otto and Martin Richardson

More articles in The Economic Record from The Economic Society of Australia Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().