Persistent Marijuana Use: Evidence from the NLSY

Jorgen Hansen and Golnaz Davalloo ()
Additional contact information
Golnaz Davalloo: Concordia University

No 16446, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We analyze persistence in marijuana consumption utilizing data from the 1997 cohort of the National Longitudinal Survey of Youth (NLSY97). We allow for three sources of persistence: pure state dependence, time invariant unobserved heterogeneity and persistence in idiosyncratic, time-varying shocks. We also consider intensity of consumption based on days of use per month and estimate a dynamic ordered Probit model using simulated Maximum Likelihood. We consider a Polya model that generalizes the more commonly used Markov models. The results show that there is a causal eect of previous use. However, ignoring unobserved heterogeneity and serially correlated shocks signicantly exaggerates the state dependence.

Keywords: marijuana; persistence; state dependence; Polya model; unobserved heterogeneity; dynamic ordered probit; simulation; NLSY (search for similar items in EconPapers)
JEL-codes: I12 (search for similar items in EconPapers)
Pages: 47 pages
Date: 2023-09
New Economics Papers: this item is included in nep-ger
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://docs.iza.org/dp16446.pdf (application/pdf)

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:iza:izadps:dp16446

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().