If one or more demographic groups are relatively unresponsive to price, then alternative policies might be appropriate. Estimation of the effect of price, by demographic group, would be helpful in designing the mix of strategies that will be most successful in reducing overall alcohol and drug abuse. Women and married people on average consume less alcohol than the other groups. An increase in income stimulates consumption of alcohol across all demographic groups except blacks, the authors find. In the case of marijuana, native Americans, Asians, Hispanics, and women are less likely to use the drug.
Adolescents are the biggest users.
Youths and Hispanics with higher incomes are more likely to smoke marijuana, but white males and blacks are less likely to do so when they are more prosperous. As for cocaine, Asians, women, and married people use less of the drug than other groups. A higher price of cocaine shrinks consumption for all but blacks and Asians, the authors find. Blacks, native Americans, Hispanics, and youth are more likely to use heroin, and women and married people less likely than other groups. Another interesting finding of this study is that policies which hike alcohol prices also reduce drug abuse.