Drugs: Drugs, economics and policy

Author: Frey B.S.

Source: Economic Policy, Volume 12, Number 25, October 1997 , pp. 387-398(12)

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Abstract:

There is no necessary link between drug consumption, addiction and social disintegration. Empirical evidence suggests that a considerable share of the population has consumed illegal drugs during some period of their lives. A substantial proportion of drug users have a job and home. Many `mature out' of drug consumption in their thirties. Most drug users are normal consumers responding systematically to relative prices.

After the failure of a repressive drugs policy, Switzerland allows cities to pursue a `third way' between repression and liberalization. The state allows carefully screened heavy addicts to inject heroin at a nominal price, while at the same time raising the cost to potential entrants. The `experiment' has produced encouraging results. The health of heroin users has improved and crime has been reduced. A homogenized drugs policy in the European Union would probably disallow such promising programmes.

Language: English

Document Type: Research article

Affiliations: 1: University of Zurich

Publication date: 1997-10-01