Question

4. The theory of “rational addiction” states that past, present, and future consumptions of an addictive good such as cocaine are compliments to each other. Describe the idea behind this theory and what it then predicts regarding whether the demand for such a good is more elastic in the short run or the long run. Do the results of the research studies presented in class confirm these predictions? Explain.

Answer 1

Despite efforts to reduce drug consumption in the United States over the past 35 years, drugs are just as cheap and available as they have ever been. Cocaine, heroin, and methamphetamines continue to cause great harm in the country, particularly in minority communities in the major cities. Marijuana use remains a part of adolescent development for about half of the country's young people, although there is controversy about the extent of its harm.

Given the persistence of drug demand in the face of lengthy and expensive efforts to control the markets, the National Institute of Justice asked the National Research Council to undertake a study of current research on the demand for drugs in order to help better focus national efforts to reduce that demand.