Becker’s rational addiction theory: an empirical test with price elasticities for distilled spirits in Denmark 1911-31

AbstractThe consumption functions in Becker and Murphy's (1988) rational addiction theory are subjected to an extensive comparative dynamics analysis. They are shown to be intrinsically characterized by a symmetric and positive semidefinite matrix of generalized Slutsky-like terms. In contrast, the typical comparative dynamics expressions, comprised of the individual partial derivatives of the consumption functions with respect to the parameters and state variables, do not possess refutable implications under the basic assumptions of the theory. Only with additional sufficiently strong assumptions, of which some are identified here, can they be signed.

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Rational Addiction Theory: A Survey of Opinions

Journal of Drug Policy Analysis ◽

10.2202/1941-2851.1019 ◽

2010 ◽

Vol 3 (1) ◽

Cited By ~ 1

Author(s):

Hans O Melberg ◽

Ole J. Rogeberg

Keyword(s):

Rational Addiction ◽

Addiction Theory

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Bridging the gap between science and drug policy: From “what” and “how” to “whom” and “when”

Behavioral and Brain Sciences ◽

10.1017/s0140525x08004901 ◽

2008 ◽

Vol 31 (4) ◽

pp. 454-455

Author(s):

Robert J. MacCoun

Keyword(s):

Science Policy ◽

Drug Policy ◽

Rational Addiction ◽

Addiction Theory ◽

Drug Policies

AbstractFor all its problems, the microeconomic “rational addiction” theory had the appeal of making clear predictions about the effects of various drug policies. The emerging picture of the “what” and “how” of addiction is far more complex. Addiction scientists might help bridge the science–policy gap by devoting more attention to the “whom” and “when” of addiction.

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An Empirical Analysis of Gambling Addiction: Results from the Case of Taiwan

Topics in Economic Analysis & Policy ◽

10.2202/1538-0653.1269 ◽

2004 ◽

Vol 4 (1) ◽

Cited By ~ 1

Author(s):

Wen-Chun Chang

Keyword(s):

Public Policy ◽

Empirical Evidence ◽

Empirical Analysis ◽

Rational Addiction ◽

Gambling Addiction ◽

Negative Externalities ◽

Price Elasticities ◽

Long Run ◽

Short Run

Abstract This study analyzes gambling addiction in Taiwan by using lottery data from 1978 to 1984. Two main conclusions can be drawn from the empirical evidence of this study. First, lottery play is strongly addictive in Taiwan, and the results are consistent with the theory of rational addiction. Second, the estimated short-run and long-run price elasticities are -0.136, and -1.463, respectively. Because consumers are very likely rational, the concerns of public policy toward gambling should focus on the negative externalities rather than on its addictive nature.

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