Journal of Political Economy Vol. 103 No. 2 1995
The Price Elasticity of Hard Drugs: The Case of Opium in the Dutch East Indies, 1923-1938
Abstract
At the beginning of this century the Dutch government controlled the opium market in the Dutch East Indies--nowadays Indonesia--for several decades. This state monopoly was called the opiumregie. Using information gathered during the opiumregie, this paper estimates price elasticities of opium consumption. It appears that short-term price elasticities of opium use are about -0.7. Long-term price elasticities are about -1.0.
- Volume
- 103
- Issue
- 2
- Pages
- 261-279
- Sources
- bibtex:phds-export.bib