Demand for Illicit Drugs by Pregnant Women

Hope Corman, Kelly Noonan, Nancy E. Reichman and Dhaval Dave

No 10688, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use survey data that have been linked to medical records data and city-level drug prices to estimate the demand for illicit drugs among pregnant women. The prevalence of prenatal drug use based on post partum interviews was much lower than that based on evidence in the mothers' and babies' medical records. We found that a $10 increase in the retail price of a gram of pure cocaine decreases illicit drug use by 12 to 15%. The estimated price effects for heroin are lower than for cocaine and are less robust across alternative model specifications. This study provides the first estimates of the effects of drug prices on prenatal drug use and yields important information about the potential of drug enforcement as a tool for improving birth outcomes.

JEL-codes: I18 K42 (search for similar items in EconPapers)
Date: 2004-08
New Economics Papers: this item is included in nep-hea and nep-law
Note: EH CH
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Published as Lindgren, Bjorn and Michael Grossman (eds.) Advances in Health Economics, and Health Services Research 16, Economics of Substance Abuse. JAI Press, 2005.

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