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	<title>Focus Mexico</title>
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		<title>Demographic Change in Northern Virginia</title>
		<link>http://focusmexico.wordpress.com/2011/08/26/demographic-change-in-northern-virginia/</link>
		<comments>http://focusmexico.wordpress.com/2011/08/26/demographic-change-in-northern-virginia/#comments</comments>
		<pubDate>Fri, 26 Aug 2011 13:49:08 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Uncategorized]]></category>

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		<description><![CDATA[A quick aside&#8230; Hispanic demographic changes in Virginia have significantly impacted social and political realities in the state. For example, Culpeper County experienced a 385% increase in its Hispanic population in the last ten years, equaling an absolute increase of 3,299 inhabitants. Northern neighbor Fauquier County similarly registered an increase of 275%, or 3,064 inhabitants [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=330&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><em>A quick aside&#8230;</em></p>
<p>Hispanic demographic changes in Virginia have significantly impacted social and political realities in the state. For example, Culpeper County experienced a 385% increase in its Hispanic population in the last ten years, equaling an absolute increase of 3,299 inhabitants. Northern neighbor Fauquier County similarly registered an increase of 275%, or 3,064 inhabitants over the same period. Still further to the northeast, Prince William County, known nationally for its controversial immigration policies, added 54,122 Hispanic inhabitants, a 198% increase.</p>
<p><a href="http://focusmexico.files.wordpress.com/2011/08/va-demographics2010.png"><img class="aligncenter size-full wp-image-332" title="VA-Demographics2010" src="http://focusmexico.files.wordpress.com/2011/08/va-demographics2010.png?w=614&#038;h=455" alt="" width="614" height="455" /></a></p>
<p>Net population increases in these counties have brought massive development in the way of thousands of single-family homes, improved roads, shopping malls, and increased tax revenue. But, perhaps most striking is the pace at which Hispanic population growth has outstripped overall population growth.</p>
<table border="1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td valign="top" width="89">
<p align="center"><strong>County</strong></p>
</td>
<td valign="top" width="70">
<p align="center"><strong>2010 Pop.</strong></p>
</td>
<td valign="top" width="77">
<p align="center"><strong>2010 % Inc.</strong></p>
</td>
<td valign="top" width="99">
<p align="center"><strong>Hispanic % Inc</strong></p>
</td>
<td valign="top" width="98">
<p align="center"><strong>Hisp. Diff (+/-)</strong></p>
</td>
</tr>
<tr>
<td valign="top" width="89">
<p align="center">Prince William</p>
</td>
<td valign="top" width="70">
<p align="center">402,002</p>
</td>
<td valign="top" width="77">
<p align="center">43%</p>
</td>
<td valign="top" width="99">
<p align="center">198%</p>
</td>
<td valign="top" width="98">
<p align="center">+ 155</p>
</td>
</tr>
<tr>
<td valign="top" width="89">
<p align="center">Fauquier</p>
</td>
<td valign="top" width="70">
<p align="center">65,203</p>
</td>
<td valign="top" width="77">
<p align="center">18%</p>
</td>
<td valign="top" width="99">
<p align="center">275%</p>
</td>
<td valign="top" width="98">
<p align="center">+ 257</p>
</td>
</tr>
<tr>
<td valign="top" width="89">
<p align="center">Culpeper</p>
</td>
<td valign="top" width="70">
<p align="center">46,689</p>
</td>
<td valign="top" width="77">
<p align="center">36%</p>
</td>
<td valign="top" width="99">
<p align="center">385%</p>
</td>
<td valign="top" width="98">
<p align="center">+ 349</p>
</td>
</tr>
<tr>
<td valign="top" width="89">
<p align="center">Madison</p>
</td>
<td valign="top" width="70">
<p align="center">13,308</p>
</td>
<td valign="top" width="77">
<p align="center">6%</p>
</td>
<td valign="top" width="99">
<p align="center">146%</p>
</td>
<td valign="top" width="98">
<p align="center">+ 140</p>
</td>
</tr>
<tr>
<td valign="top" width="89">
<p align="center">Orange</p>
</td>
<td valign="top" width="70">
<p align="center">33,481</p>
</td>
<td valign="top" width="77">
<p align="center">29%</p>
</td>
<td valign="top" width="99">
<p align="center">245%</p>
</td>
<td valign="top" width="98">
<p align="center">+ 216</p>
</td>
</tr>
<tr>
<td valign="top" width="89">
<p align="center">Albemarle</p>
</td>
<td valign="top" width="70">
<p align="center">98,970</p>
</td>
<td valign="top" width="77">
<p align="center">25%</p>
</td>
<td valign="top" width="99">
<p align="center">167%</p>
</td>
<td valign="top" width="98">
<p align="center">+ 142</p>
</td>
</tr>
</tbody>
</table>
<p>Only sampling the typically rural counties between Prince William and Albemarle, a leisurely 90-minute drive down VA-Route 29, one can see how demographics have dramatically shifted towards a more Latino population. A number of factors have contributed to settling in these counties, including a construction boom in the region and relatively lower property and living costs compared to Fairfax, Arlington and Alexandria counties.  Virginia’s demographic transformation is set to dramatically alter the commercial, social and political future of the state in the decade to come.</p>
<p>Data/Map Source: <a href="http://www.cnn.com/SPECIALS/defining.america/map/index.html?&amp;hpt=hp_c2">CNN</a></p>
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		<title>2011 03 09: Mexico lawmakers livid over ATF &#8220;Fast &amp; Furious&#8221; Operation</title>
		<link>http://focusmexico.wordpress.com/2011/03/10/2011-03-09-mexico-lawmakers-livid-over-atf-fast-furious-operation/</link>
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		<pubDate>Fri, 11 Mar 2011 01:08:10 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Administration of Justice]]></category>
		<category><![CDATA[International Cooperation]]></category>
		<category><![CDATA[Seguridad Pública]]></category>
		<category><![CDATA[atf]]></category>
		<category><![CDATA[DOJ]]></category>
		<category><![CDATA[fast and furious]]></category>
		<category><![CDATA[Homeland Security]]></category>
		<category><![CDATA[ice agent]]></category>
		<category><![CDATA[justice]]></category>
		<category><![CDATA[Mexico]]></category>
		<category><![CDATA[mexico drug war]]></category>
		<category><![CDATA[murders]]></category>
		<category><![CDATA[operation]]></category>
		<category><![CDATA[rastrear armas]]></category>
		<category><![CDATA[securidad publica]]></category>
		<category><![CDATA[tracking weapons]]></category>
		<category><![CDATA[us border patrol]]></category>
		<category><![CDATA[violence]]></category>
		<category><![CDATA[weapons]]></category>

		<guid isPermaLink="false">http://focusmexico.wordpress.com/?p=325</guid>
		<description><![CDATA[Source: http://www.csmonitor.com/World/Americas/2011/0309/Mexico-lawmakers-livid-over-US-Operation-Fast-and-Furious Mexican lawmakers have condemned the US &#8216;Operation Fast and Furious,&#8217; which purportedly allows gun smuggling in order to track weapons to Mexican drug lords. By Nacha Cattan, Correspondent / March 9, 2011 Mexico CityMexico has long complained that drug gangs are terrorizing cities with high-powered weapons smuggled from the United States. But Mexican lawmakers are now [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=325&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Source: <a href="http://www.csmonitor.com/World/Americas/2011/0309/Mexico-lawmakers-livid-over-US-Operation-Fast-and-Furious">http://www.csmonitor.com/World/Americas/2011/0309/Mexico-lawmakers-livid-over-US-Operation-Fast-and-Furious</a></p>
<p>Mexican lawmakers have condemned the US &#8216;Operation Fast and Furious,&#8217; which purportedly allows gun smuggling in order to track weapons to Mexican drug lords.</p>
<p>By <a href="http://www.csmonitor.com/About/Contact-Us-Feedback">Nacha Cattan</a>, Correspondent / March 9, 2011</p>
<div>Mexico City<a href="http://www.csmonitor.com/World/Topics/Mexico" target="_blank">Mexico</a> has long complained that drug gangs are terrorizing cities with high-powered weapons smuggled from the United States. But Mexican lawmakers are now up in arms over the recent revelation that the US Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) purposefully allows some of these weapons to be smuggled south of the border so it can track them as part of &#8220;<a href="http://www.csmonitor.com/USA/Justice/2011/0304/Did-flawed-US-policies-play-role-in-death-of-a-border-patrol-agent" target="_blank">Operation Fast and Furious</a>.&#8221;&nbsp;</p>
<p>“[The operation] is a grave violation of international rights,” Jorge Carlos Ramírez Marín, president of Mexico&#8217;s lower house of Congress, said Tuesday. “What will happen if next time they’ll need to funnel in trained assassins, for example, or nuclear arms?”</p>
<p>Fellow congressman Humberto Trevino claims that an estimated 150 shooting injuries or deaths have been linked to guns that were allowed by US agents to proceed into Mexico.</p>
<p><a href="http://www.csmonitor.com/CSM-Photo-Galleries/In-Pictures/Mexico-s-drug-war" target="_blank"><strong>IN PICTURES: Mexico&#8217;s drug war</strong></a></p>
<p>The legislators are calling for a joint US-Mexico working group to examine Operation Fast and Furious. Some also proposed sending a congressional delegation to Washington to press for more action against gun trafficking, which plays a crucial role in fueling a drug war that has killed 35,000 people here since December 2006.</p>
<p>Mexico’s Foreign Ministry on Saturday requested “detailed information” from US authorities about the operation.</p>
<p><a id="eztoc9731319_0_1" name="eztoc9731319_0_1"></a></p>
<h3>How &#8216;Fast and Furious&#8217; backfired</h3>
<p>A Phoenix-based operation, Fast and Furious backfired when two of the weapons in the program were found at the scene of a border shootout that killed US Border Patrol agent Brian Terry in December. ATF whistleblowers and some US congressmen kicked up a fuss over a program they feared would aid cartels in killing innocent people. And last month, a <a href="http://www.csmonitor.com/World/Americas/2011/0302/US-agent-s-killing-in-Mexico-highlights-menace-of-cross-border-gun-trade" target="_blank">gun smuggled from the US was used in the killing</a> of US Special Agent Jamie Zapata outside Mexico City, although it has not been determined that the gun was part of Fast and Furious.</p>
<p>As a result, last week the ATF announced a review of its firearms trafficking strategies.</p>
<p>The controversy comes just as US-Mexico relations appeared to be on the mend following last week’s visit by <a href="http://www.csmonitor.com/World/Americas/2011/0303/US-Mexico-ties-Tensions-simmer-beneath-Calderon-s-visit-to-White-House" target="_blank">President Felipe Calderón to the White House</a>. But this latest problem seems to show that not much of substance was resolved at the leaders meeting, some experts say.</p>
<p>Javier Oliva, a security expert at Mexico’s National Autonomous University, wonders whether Mexico even knew about the operation. “The fact that the Mexican government is requesting information demonstrates that there isn’t much collaboration with the United States,” he says.</p>
<p>Mexico will use the ATF controversy to keep pressuring the US on arms trafficking, says Vanda Felbab-Brown, a Mexico expert at the Brookings Institution in Washington.</p>
<p>“Now [Mexico] can say that the US is equally lacking in intelligence, and are equally having problems with efficiency of [its] programs,” she says. “It allows the Mexican government to deflect the focus from problems in Mexican institutions.”</p>
<p><a id="eztoc9731319_0_2" name="eztoc9731319_0_2"></a></p>
<h3>1,200 guns on the loose?</h3>
<p>According to the Center for Public Integrity in Washington, a public-interest investigative organization that has <a href="http://www.publicintegrity.org/articles/entry/2976/" target="_self">done extensive reporting on the case</a>, only 10 percent of the 2,000 guns that Fast and Furious allowed to gunrunners to purchase were eventually recovered in Mexico. Close to 30 percent – or 600 guns – were recovered in the US. The remaining 1,200 guns have not been recovered and possibly remain in the hands of drug gangs.</p>
<p>But law enforcement officials and some experts, including Ms. Felbab-Brown, argue that such sting operations lead to the capture of high level traffickers, and not mere straw purchasers who can be easily replaced.</p>
<p>The ATF&#8217;s current investigation into the operation is essential, however, adds Felbab-Brown, to determine whether the tracked guns that wound up in shootouts were a result of corruption on either side of the border, or due to error.</p>
</div>
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		<title>2011 03 04: Obama no pidió armar a agentes en México: Poiré</title>
		<link>http://focusmexico.wordpress.com/2011/03/10/2011-03-04-obama-no-pidio-armar-a-agentes-en-mexico-poire/</link>
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		<pubDate>Fri, 11 Mar 2011 01:04:27 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[International Cooperation]]></category>
		<category><![CDATA[Narcotics Trafficking]]></category>
		<category><![CDATA[Presidency]]></category>
		<category><![CDATA[Seguridad Pública]]></category>
		<category><![CDATA[alejandro poire]]></category>
		<category><![CDATA[armas]]></category>
		<category><![CDATA[Consejo de Seguridad Nacional]]></category>
		<category><![CDATA[ice]]></category>
		<category><![CDATA[poire]]></category>
		<category><![CDATA[portar armas]]></category>

		<guid isPermaLink="false">http://focusmexico.wordpress.com/?p=323</guid>
		<description><![CDATA[Source: http://www.eluniversal.com.mx/notas/749300.html El secretario técnico del Consejo de Seguridad Nacional aclaró que &#8216;lo que se dijo ayer fue que tenemos que evaluar e intentar cuáles son los mejores mecanismos de seguridad para agentes norteamericanos&#8217; Alejandro Poiré, secretario técnico del Consejo de Seguridad Nacional, rechazó que el presidente de Estados Unidos, BarackObama, haya solicitado al gobierno mexicano [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=323&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Source: <a href="http://www.eluniversal.com.mx/notas/749300.html">http://www.eluniversal.com.mx/notas/749300.html</a></p>
<p><strong>El secretario técnico del Consejo de Seguridad Nacional aclaró que &#8216;lo que se dijo ayer fue que tenemos que evaluar e intentar cuáles son los mejores mecanismos de seguridad para agentes norteamericanos&#8217;</strong></p>
<p>Alejandro Poiré, secretario técnico del Consejo de Seguridad Nacional, rechazó que el presidente de Estados Unidos, Barack<strong>Obama</strong>, haya solicitado al gobierno mexicano que los <strong>agentes</strong> puedan <strong>portar armas</strong> en territorio nacional.</p>
<p>A pregunta expresa de Carlos Puig en<strong> </strong><em>W Radio</em> sobre si los agentes norteamericanos podrán portar armas en México, el funcionario dijo: &#8220;en ningún momento por parte de la administración Obama se planteó esa solicitud, lo que se dijo ayer fue que tenemos que evaluar e intentar cuáles son los mejores mecanismos de seguridad para agentes norteamericanos que están aquí en el marco de la ley&#8221;.</p>
<p>Poiré agregó que se debe reconocer en EU que &#8220;es <strong>ilegal exportar</strong> armas a México&#8221;. &#8220;Reconocemos el derecho constitucional de los ciudadanos estadounidenses a tener un arma para su protección, pero también reconocemos que se tiene que hacer válido que es ilegal exportar esas armas a México&#8221;, señaló.</p>
<p>Sobre la relación de Felipe Calderón con <strong>Carlos Pascual</strong>, el embajador de EU en México, dijo que &#8220;el representante de EU en nuestro país ha venido en esa medida para poder hacer esa relación funcional&#8221;.</p>
<p>Rechazó lo señalado por el periódico<em> The New York Times</em> sobre que Calderón reclamó a Obama las aseveraciones de Pascual sobre el gobierno mexicano, según los cables de Wkileaks. &#8220;Me gustaría saber la fuente del NYT&#8221;, dijo.</p>
<p>cg</p>
<p>&nbsp;</p>
<p>&nbsp;</p>
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		<title>2011 03 09: No hay aspirantes débiles como cree Pascual: PAN</title>
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		<pubDate>Fri, 11 Mar 2011 00:55:32 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Elections]]></category>
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		<category><![CDATA[pascual]]></category>
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		<description><![CDATA[Source: El Universal Los líderes panistas, Gustavo Madero y Cecilia Romero, aseguran que contrario a lo que afirma el embajador de EU, sus aspirantes son fuertes El presidente nacional del PAN, Gustavo Madero, rechazó las afirmaciones del embajador de Estados Unidos en México,Carlos Pascual, en el sentido de que los aspirantes a la candidatura a la [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=319&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Source: <a href="http://www.eluniversal.com.mx/notas/750706.html">El Universal</a></p>
<p><strong>Los líderes panistas, Gustavo Madero y Cecilia Romero, aseguran que contrario a lo que afirma el embajador de EU, sus aspirantes son fuertes</strong></p>
<p>El presidente nacional del PAN, Gustavo Madero, rechazó las afirmaciones del embajador de Estados Unidos en México,<strong>Carlos Pascual</strong>, en el sentido de que los aspirantes a la candidatura a la Presidencia del blanquiazul son grises.</p>
<p>En entrevista radifónica con Carmen Aristegui, Madero Muñoz dijo que el PAN está fuerte con sus candidatos y tienen la confianza de que en el 2012 refrendarán la presidencia de la República.</p>
<p>En tanto, la secretaria general del partido, Cecilia Romero, rechazó debilidad de los aspirantes y dijo que los candidatos del PAN son fuertes y el candidato que resulte elegido &#8220;va a estar en posición muy adecuada para ganar la Presidencia de la República&#8221;.</p>
<p>Entrevistada en su participación en un evento en conmemoración del Día Internacional de la Mujer de la Organización de las Naciones Unidas en México, Cecilia Romero aseguró que no son declaraciones las del embajador, sino filtraciones de un informe y esa información está descontextualizada porque fue hace más de un año.</p>
<p>En un cable filtrado por <em>WikiLeaks</em>, <strong>Pascual </strong>detalló al subsecretario de Asuntos Hemisféricos, <strong>Arturo Valenzuela</strong>, el panorama que encontraría en su visita a nuestro país, desde el punto de vista político, económico y social.</p>
<p>En el cable 09 México 3423, el embajador refirió que los diálogos de seguridad con nuestro país podrían verse afectados por la caída del porcentaje de aprobación de<strong>Calderón</strong>, las preocupaciones económicas, la percepción popular sobre la lucha contra el narcotráfico y la debilidad política del PAN.</p>
<p>Sobre esto, Madero dijo: &#8220;no comparto yo su punto de vista sobre la situación política, sobre todo que quedó demostrado que ni fue exacta, correcta, ni bien contextualizada.</p>
<p>En nuestro entorno político, el PAN está fuerte con nuestros candidatos y sentimos toda la confianza de que en el 2012 vamos a refrendar la Presidencia de la República, no tenemos duda&#8221;.</p>
<p>El panista dijo que este tipo de filtraciones de<em>WiliLeaks</em>están haciendo daño porque están descontextualizadas porque cuando se hicieron &#8220;ni siquiera estaban definidos quienes iban a ser&#8221; los candidatos.</p>
<p>El chihuahuanse se pronunció porque el gobierno de México exija por la vía diplomática y a través de los órganos de seguridad nacional una aclaración y una explicación sobre los alcances del operativo &#8220;Rápido y furioso&#8221; que permitió el paso ilegal de cientos de armas de Estados Unidos a nuestro país.</p>
<p>Además se pronunció porque se dé una regulación de la venta de armas de asalto en la entidad americana para así bajar los niveles de violencia que hay en nuestro país.</p>
<p>sma</p>
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		<title>2011 01 14: A Surge to the Center</title>
		<link>http://focusmexico.wordpress.com/2011/01/18/2011-01-14-a-surge-to-the-center/</link>
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		<pubDate>Tue, 18 Jan 2011 19:09:11 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Elections]]></category>
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		<category><![CDATA[Right]]></category>
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		<description><![CDATA[Source: Journal of Democracy &#38;  Inter-American Dialogue (pdf version) by Michael Shifter Latin America, long associated with sharp ideological swings and notably erratic politics, is increasingly settling into the middle of the left-right political continuum. This development is discernible in voter attitudes and major policy directions in many countries. At times, the rhetoric that political [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=314&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Source: Journal of Democracy &amp;  <a href="http://www.thedialogue.org/uploads/Andean/Journal_of_Democracy_-_A_Surge_to_the_Center_(1-2011).pdf">Inter-American Dialogue</a> (pdf version) by Michael Shifter</p>
<p>Latin America, long associated with sharp ideological swings and notably erratic politics, is increasingly settling into the middle of the left-right political continuum. This development is discernible in voter attitudes and major policy directions in many countries. At times, the rhetoric that political leaders employ and the ways in which they describe themselves can obscure this trend and give the impression that ideology is more salient than it actually is. Although ideology still dominates the political discourse and environment in some countries, a careful examination of most approaches to economic, social, and security challenges throughout the region reveals that the ideological range within which policy is made has considerably narrowed. There is today a greater measure of predictability and pragmatism.</p>
<p>This trend is not irreversible; it hinges on continued progress in a variety of areas. Its implications for improving the quality of democracy are generally positive, however. There is a growing focus in Latin America on developing practical and realistic solutions to serious economic and social problems—an approach to politics that tends to go together with an embrace of the rules of the democratic game.</p>
<p>At the same time, however, democratic deficits remain considerable. Too many Latin American countries are troubled by weak political institutions, inadequate judicial systems, stubbornly high levels of inequality, and rampant organized crime and citizen insecurity. There are also clear signs, especially among young people, of an undercurrent of discontent with “politics as usual”—meaning especially the widespread practice of cronyism—and a demand for serious efforts to tackle persistent corruption. These are warnings for the region’s political leaders: In addition to embracing more centrist politics, they must meet higher standards and expectations for effective and responsive political leadership.</p>
<p>The findings of the Latinobarómetro, a respected comparative public opinion survey that has tracked political attitudes throughout the region since 1995, shed light on the shift to the center in recent years. In 2002, for example, only 29 percent of Latin Americans identified themselves as centrists; by 2008, that number had jumped to 42 percent. A systematic review of left-right political identities from 1996 to 2009 (see Table) clearly shows that most Latin Americans are clustered in the middle, which has remained relatively stable over time. A number of countries have moved slightly leftward, but overall the regionwide movement has been much more toward the center than to the left of the ideological spectrum. On a scale of 0 to 10, with 0 being the farthest left, no country fell below 4.0 for any year during this period—only one point left of dead center.</p>
<p><img src="http://www.thedialogue.org/uploads/Andean/LatBar.jpg" border="0" alt="" hspace="3" vspace="2" width="387" height="348" align="right" />Likewise, the Americas Barometer, a survey periodically carried out by the Latin American Public Opinion Project (LAPOP) of Vanderbilt University and a consortium of some twenty partner institutions, concluded in 2006 that, while there had indeed been a “shift to the left” in many countries, “the magnitude of the shift is small and the center of gravity remains somewhat to the right.”3 The study found that the gap between left and right varies sharply from country to country. Although the results reveal continuing ideological cleavages in Latin America, it is unclear whether the shift in attitudes is more toward a leftist or a centrist orientation.</p>
<p>Political scientists Andy Baker and Kenneth Greene have developed an indicator known as “vote-revealed leftism,” or VRL, to determine voters’ ideology. The VRL index places voters’ preferences for leftist candidates on a scale of 1 to 20, with 1 the farthest right and 20 the farthest left. Mirroring the Latinobarómetro data, between 1995 and 2008 Latin America’s VRL went from 7.89 (center-right) to 9.82 (close to the exact midpoint of 10.5)—indicative of the centrism that has become more prominent throughout the region in recent years.</p>
<p>The move toward the pragmatic center is largely a product of fundamental changes along a number of critical dimensions. It is hardly surprising that political moderation has accompanied the region’s recent and growing prosperity. Between 2003 and 2008, Latin American countries registered economic-growth rates higher than those seen in any other comparable period in recent memory. Moreover, to the surprise of most economists, Latin America weathered the 2009 economic crisis reasonably well (the major exception was Mexico, whose economy is more closely tied to that of the United States). Brazil especially stood out in this respect, but other economies also endured global financial strains better than had been anticipated.</p>
<p>The region’s sound performance reflects improved macroeconomic policy making as well as deepening economic ties with the rest of the world and especially China, whose intake of Latin American commodities has helped to fuel its own spectacular growth.  According to the UN Economic Commission on Latin America, the region is expected to grow, on average, at a rate of more than 5 percent in 2010. Negative growth will beset only Venezuela and—in the wake of its devastating earthquake and other unrelenting difficulties—Haiti.</p>
<p>In addition, the region’s poverty levels have declined measurably in recent years. In some countries, the drop has been particularly impressive. Brazil, for example, managed to lift 29 million people (close to a sixth of the country’s total population) out of poverty between 2003 and 2009. Furthermore, as Luis López-Calva and Nora Lustig have documented, levels of inequality—traditionally Latin America’s Achilles heel—have also decreased in some countries, thanks in part to effective social policies such as conditional cash-transfer (CCT) programs. The standard indices of socioeconomic inequality remain higher in Latin America than in any other world region. Yet some countries have made notable progress in shrinking the enormous disparity between rich and poor that all too often has sown a harvest of discontent and instability in Latin American politics. These economic developments have resulted in swelling middle classes, particularly in a number of the larger Latin American countries. This is an important development because, as Seymour Martin Lipset wrote in 1967, a significant middle class has long been the missing ingredient for robust democratic development in the region.</p>
<p><strong>Key Players Move to the Middle</strong></p>
<p>Several key cases exemplify the regionwide trend toward centrism. In Brazil’s 2010 presidential election, the policy differences between the two leading candidates—Dilma Rousseff of the Workers’ Party (PT) and José Serra of the Social Democratic Party (PSDB)—were mostly negligible, with Serra espousing a more restrained foreign policy and assigning a somewhat less important role to the state in the management of economic affairs. Both candidates promised strikingly broad continuity with the successful policies pursued by outgoing president Luiz Inácio “Lula” da Silva, for whom Rousseff had served as chief of staff.</p>
<p>As Brazil’s first president from the PT, Lula had built on and extended the foundation of economic stability laid by his predecessor Fernando Henrique Cardoso of the PSDB, with special focus on enhancing social benefits through the Bolsa Família CCT program. The economic results speak for themselves: Since 2005, Brazil has averaged 4 percent growth, poverty is down, and so is inequality. Lula, whose policies were marked by fiscal discipline and expanded trade with China (which has surpassed the United States as Brazil’s largest trading partner), was regarded as a “leftist” leader. Yet he exercised enormous moderation and pragmatism in his economic policies. Brazilian voters, mostly pleased with their improved well-being, quite rationally elected Lula’s handpicked successor, who will likely pursue a similarly pragmatic course. Although Brazil still confronts immense challenges, including low levels of productivity, deficient infrastructure, and low-quality education, the country’s progress has been impressive.</p>
<p>In Colombia, whose population of 45 million makes it South America’s second-largest country after Brazil (190 million), there is also a notable trend toward centrism and consensus on key public policies among politicians of varying stripes. In the country’s May 2010 presidential contest, the differences among the early candidates vying to replace popular incumbent Alvaro Uribe were modest. All six of them essentially endorsed Uribe’s hard-line approach to dealing with the Revolutionary Armed Forces of Colombia (FARC) insurgency. In economic affairs as well, there were no serious proposals to depart from current, predominantly promarket policies. As Eduardo Posada-Carbó points out in his essay, the candidates differed mainly in terms of personal style, background, and perceived fitness for the job.</p>
<p>Juan Manuel Santos of the Social Party of National Unity (Party of the U) won overwhelmingly. Santos’s victory can be attributed to his having served as Uribe’s defense minister, his broad experience in security and foreign policy, the effectiveness of his campaign, and the perceived shortcomings of his rival, Green Party candidate and former Bogota mayor Antanas Mockus. Santos is a proponent of Bill Clinton and Tony Blair’s “third way,” a blend of market economics and socialist ideals. Already during the first several months of his presidency, Santos has demonstrated his pragmatism at home and abroad. He has, for example, accorded high priority to developing a modus vivendi with the notably unpredictable and problematic Hugo Chávez, president of neighboring Venezuela—a more diplomatic and institutional approach than the one that Uribe favored.</p>
<p>Chile, one of the region’s few consolidated democracies, has also undergone a shift toward greater pragmatism in recent years. In the past, the country had seen different ideological experiments, from the left of the political spectrum (Salvador Allende, 1970–73) to the far right (Augusto Pinochet, 1973–90). In the last election, however, the two runoff candidates—Sebastián Piñera of the conservative Alliance for Chile and Eduardo Frei of the center-left coalition known as the Concertación—displayed relatively narrow policy differences on key economic, social, and foreign-policy questions.10 But after twenty years, Chileans had grown tired of Concertación rule and were eager for a change, as best embodied by Piñera. As Latinobarómetro data reveal, however, there is no evidence of any ideological shift to the right among Chileans that accounts for this electoral outcome.</p>
<p>As president, Piñera has essentially continued to pursue the social programs that were carried out under his immediate predecessors, Michelle Bachelet and, before her, Ricardo Lagos—both Socialists. Indeed, analysts have characterized the Piñera government as resembling more a fifth Concertación administration than anything radically different. In the realm of foreign policy, Piñera has enjoyed a curiously practical working relationship with President Evo Morales of neighboring Bolivia. Although Piñera and Morales could hardly diverge more widely on major political and ideological questions, a set of shared interests has led them to manage the historically tense relationship between Chile and Bolivia quite effectively. The solidarity and personal connection between the two presidents was further strengthened when the eyes of the world became fixed on Chile during the October 2010 rescue of the 33 long-trapped miners—one of whom was Bolivian.</p>
<p>The case of Peru poses a particularly interesting and challenging puzzle. Not only has the country been experiencing an economic boom—thanks largely to trade and exports—but its levels of poverty and inequality have dropped considerably as well.  A country that has long been, and continues to be, sharply torn along ethnic, class, and geographic lines, Peru of late has witnessed a substantial growth of its middle class, a development that augurs well for its long-term democratic prospects.</p>
<p>At the same time, however, these impressive economic advances have yet to be joined by any high degree of political institutionalization and predictability. As highlighted by the country’s October 2010 municipal and regional elections, political parties remain severely fractured and widely discredited. Alone among Latin American leaders presiding over dynamic economic growth, Peru’s President Alan García, of the center-left Aprista party, has rarely exceeded approval ratings of 30 percent. Moreover, according to the Latinobarómetro, levels of citizen confidence in political leaders and institutions in Peru are among the lowest in the region.</p>
<p>As a result, the outcome of the April 2011 presidential election remains uncertain and hard to predict. To be sure, with major economic and social improvements, the risks of political instability in Peru have receded somewhat in recent years. Nonetheless, the possibility of an antisystem candidate such as Ollanta Humala of the Nationalist Union Party for Peru (who nearly won in 2006) reaching the presidency cannot be ruled out. It is striking, however—and a testament to the trend toward moderation—that in the current electoral climate, Humala has moved markedly to the center on economic and foreign policy. Despite this tack to the middle, however, polls suggest that other leading candidates are doing better than he is with voters. These contenders are former Lima mayor Luis Castañeda Lossio of the National Solidarity Party; congresswoman Keiko Fujimori (daughter of ex-president Alberto Fujimori) of the Strength 2011 party; and former president (2001–2006) Alejandro Toledo of the Peru Possible party. The campaign is likely to reveal that, in light of their recent economic success, Peruvians have come closer to a consensus about macroeconomic policy, though there is still deep discontent about corruption and public insecurity and frustration with the slow and sporadic strides on the equality issue.</p>
<p><strong>What About the Supposed Left Turn?</strong></p>
<p>Just a few years ago, media and scholarly observers were emphasizing a widespread leftward shift in Latin American politics, as reflected in the electoral victories of Morales in Bolivia, Lula in Brazil, Bachelet in Chile, Rafael Correa in Ecuador, Daniel Ortega in Nicaragua, and Chávez in Venezuela—in addition, of course, to the rule of the Castro brothers in Cuba.  Numerous studies and analyses focused on Latin America’s increasingly radical orientation in the arenas of economic and social policy as well as in international affairs. Such a trend, if true, would tend to undercut the argument that most of the region is pursuing a more centrist, moderate course.</p>
<p>There is little question that, at least in the first part of the twentyfirst century, candidates who could be described as left-leaning gained growing support and allegiance in parts of Latin America. The political center of gravity, as Latinobarómetro and other public-opinion surveys have shown, has moved slightly to the left. In general, countries in the region now place more emphasis on achieving greater socioeconomic equality, and they have become more distant and independent—at least politically, if not more broadly—from the United States than they were in the 1990s. These changes have been profound and are likely to endure.</p>
<p>Yet any mention of this leftward swing of the pendulum cries out for significant qualification. First, many analysts and scholars have properly called attention to the sharp differences that divide the region’s “leftist” governments from one another. For example, the literature often distinguishes between a moderate and pragmatic left—Lula’s Brazil, Bachelet’s Chile, the Uruguay of Tabaré Vásquez and now José Mujica of the Broad Front, and the El Salvador of Mauricio Funes of the FMLN (Farabundo Martí National Liberation Front)—and a more populist and authoritarian grouping made up of Chávez’s Venezuela, Morales’s Bolivia, Ortega’s Nicaragua, and, many claim, Correa’s Ecuador. While such a broad distinction has some heuristic value, it obscures the sharp differences—which may well outnumber the similarities—that exist within these two large groupings. As Mitchell Seligson argues, the leftright divide lines up very differently across countries in the region.</p>
<p>The next major qualification that must be brought to bear in assessing the “leftward-shift” thesis is the current—and too often overlooked—tendency toward a leftism strongly shaped by pragmatism. Uruguay’s President Mujica, who was inaugurated in March 2010, exemplifies this trend. A former Marxist Tupamaro guerrilla, Mujica has shown a clear commitment to moderate and prudent economic policies. Vice-President Danilo Astori, who served as finance minister under Vásquez, adopted a range of economic policies aimed at controlling the debt, curbing inflation, and attracting foreign investment. The policies that Astori helped to put in place—under both Vásquez and Mujica—have contributed to Uruguay’s ability to weather the recent economic crisis and, with increased foreign investment and sustained growth, even to prosper. It is worth noting that Mujica has demonstrated a less ideological approach on the foreign-policy front as well, as demonstrated by his public meeting (rare for Latin American leaders) in Cuba with the dissident “women in white” (Damas de Blanco) who are protesting the Castro regime’s repressive policies.</p>
<p>Moreover, the most moderate among the so-called leftist countries have proven to be the most successful. They blend economic progress, social-equity gains, and democratic governance. Brazil’s accomplishments stand out in this regard, especially given its history of economic disorder, authoritarianism, and stubbornly and unacceptably high levels of social inequality. To be sure, vast inequities persist in Brazil and will pose major challenges for the Rousseff administration. But the recent gains reflect a formula that is undeniably producing positive results. Moreover, it is a formula that rests on the effective macroeconomic policies (including fiscal discipline and expanded trade liberalization) begun under Cardoso’s presidency in the 1990s and carried on under Lula’s “leftist” government.</p>
<p>Many of Latin America’s more successful left-leaning governments have supplemented the tenets of the Washington Consensus—ten market- oriented policies promoting fiscal discipline, privatization, deregulation, and trade liberalization—with targeted social policies. While some of the prescriptions first advanced by the Washington Consensus in 1989 are no doubt valid (fiscal discipline, for example), the list was incomplete, as is widely recognized today, and it overlooked the persistent problems of poverty and inequality in Latin America.</p>
<p>By contrast, leftist governments that have based themselves not on democratic give-and-take, as in Brazil, but on the autocratic concentration of vast power into the hands of a single person, have demonstrably failed in Latin America—if not in terms of longevity, then at least in terms of effectiveness. This is particularly the case in Venezuela, as Javier Corrales notes in his essay. After nearly a dozen years in power, Chávez retains the support of nearly half of Venezuela’s electorate. Yet the setback that his ruling party suffered in the September 2010 legislative elections reveals a growing dissatisfaction with the government’s performance in tackling a deteriorating economic and security situation that particularly plagues the poorest sectors, Chavez’s main constituency. In 2010, Venezuela’s GDP was projected to shrink by 3 percent, while the region’s economy as a whole (apart from natural disaster– afflicted Haiti) was expected grow by more than 5 percent.</p>
<p>In this regard, however, it is important to resist the temptation to lump together all the governments commonly deemed to belong to the populist-authoritarian left. There are relevant distinctions among them, and each has particular features that merit careful attention. Chávez’s grandiose ambitions and oil wealth, for example, make him a unique phenomenon in today’s Latin America. He cannot be easily compared with other leaders, even those who form part of the coalition that he heads, the Bolivarian Alternative for Latin America (ALBA). In Bolivia, for example, despite the concentration of power in the presidency and the erosion of constraints, Morales’s government has exhibited admirable fiscal discipline and earned praise from international financial institutions. Moreover, although profound political and economic problems remain, Bolivia under Morales has witnessed higher levels of political participation from the country’s majority (and traditionally marginalized) indigenous population.</p>
<p>Finally, it is unclear whether this set of leaders was elected in the first place because of an ideological shift or because the traditional political institutions had collapsed, discrediting the incumbents. As former Peruvian president Alejandro Toledo has suggested,</p>
<ul>
<li><em>&#8220;In the absence of concrete and positive economic results, people lose trust in a political system that prides itself on lofty values which it seemingly cannot live up to. Citizens come to feel that the protections promised by this system do not apply to them, they lose faith in themselves, and they grow dangerously ready to forfeit their human rights and their country’s liberal-democratic safeguards to a strongman who promises immediate results to a marginalized majority.&#8221;</em></li>
</ul>
<p>The available polling data, from Latinobarómetro and elsewhere, do not suggest any underlying ideological transformation among voters. As Baker and Greene argue, there was a growing demand in a number of countries to moderate radical reforms in the area of privatization, for example. It remains to be seen, however, whether the resistance and discontent stemmed from the practice of privatization per se, or whether it derived from the rampant corruption that often accompanied it. According to the Pew Research Center, the overall attitude toward free trade and globalization has been consistently more favorable in Latin America—even among the “leftist” countries—than in the United States. In sum, there is little evidence to suggest that there has been a wholesale repudiation of the key ideas of the Washington Consensus, as is often claimed. Rather, there has been a modification, refinement, and expansion of these ideas, which have been put into practice with considerable success by recent “leftist” governments in Chile and Brazil.</p>
<p>Although some recent and important elections in South America have received the lion’s share of attention from commentators, it is also instructive to examine developments in Central America, the Caribbean, and Mexico. Analysts rightly point to the increasingly sharp differentiation that sets South America apart from the rest of Latin America in critical respects. South American countries are becoming more and more independent of the United States and cultivating important ties with China, which has become an avid consumer of the region’s commodities. Central American and Caribbean countries and Mexico, however, are increasing their economic integration with the United States through a series of important trade agreements, while simultaneously competing with China in the area of light manufacturing. In addition, the role and importance of immigration and remittance flows are considerably more prominent in the northern, as distinguished from the southern, part of Latin America.</p>
<p>Nonetheless, in the realm of politics there are some striking similarities. In examining a number of recent elections in Central America, for example, it is hard to discern a pronounced ideological bent. The cases of El Salvador and Panama illustrate this point. In 2009, Mauricio Funes became El Salvador’s first elected president from the FMLN, the party of the demobilized guerrilla movement that fought in the country’s bloody civil conflict (1979–92), after nearly twenty years of rule by the rightist Arena party. Funes’s election carries enormous symbolic significance for a region seeking to transcend longstanding ideological chasms.</p>
<p>Indeed, Funes has governed as a consummate pragmatist and has modeled his government after Lula’s and others associated with Latin America’s more moderate left. Operating within significant economic constraints, Funes has pursued free-market policies that are distinguished from those of his predecessors by a greater emphasis on poverty-alleviation strategies. The Funes administration’s foreign policies have been centrist as well, as reflected in El Salvador’s accommodating posture toward the United States and its stand in the Honduran controversy. Funes has strongly urged other Latin American leaders, including Lula, to recognize the government of Porfirio Lobo, who was elected president of Honduras in November 2009 under a provisional administration that followed the June 2009 military coup.</p>
<p>In 2009, Panamanians also displayed considerable fatigue with their ruling party, the Democratic Revolutionary Party (PRD), and instead elected Ricardo Martinelli of the more conservative Democratic Change party. Martinelli, whom the Economist depicted as a “centrist independent,” had skillfully portrayed himself as an “outsider” and successfully tapped into the public desire for a change. Although there have been some concerns about democracy and the rule of law under the current administration, Martinelli has in great measure continued the economic path pursued by his predecessor, Martín Torrijos of the PRD. Panama has enjoyed an impressive economic boom and feels little incentive to change course. It would be a stretch to argue that either Funes’s or Martinelli’s electoral victory was a product of an ideological shift in one direction or the other in Central America.</p>
<p>Ideological fervor appears to be on the wane in other countries as well. Despite some occasionally heated rhetoric from Nicaragua’s President Daniel Ortega (leader of the Sandinista National Liberation Front since 1979 and president of Nicaragua from 1985 until his defeat at the polls in 1990), a close examination of his key decisions reveals less ideology and more pragmatism. Ortega’s main aim is to stay in power, and he has shown himself ready to pursue it by any means necessary—including electoral fraud, cynical dealmaking, manipulations of the political system, and even amassing troops on a disputed border with Costa Rica to arouse nationalist sentiment. At the same time, he has honored the Central America Free Trade Agreement with the United States, forged under his predecessor, and he has been accommodating with the international financial community. Under the current Ortega regime (he was elected president again in 2006 after numerous failed runs), ideology has taken a back seat to sheer power politics. Thus in the case of Nicaragua, the implications for democratic progress of waning ideological fervor are far less heartening than has been the case elsewhere.</p>
<p>The Dominican Republic and Mexico also offer examples of electorates that are pressing for moderate-leaning governments with a problem-solving bent. Leonel Fernández, who is currently serving his second consecutive term (and third term overall) as president of the Dominican Republic, is regarded as a reformer who has presided over sustained economic growth and implemented a number of social programs aimed at reducing poverty. Fernández has further burnished his centrist credentials by serving as a mediator in various regional disputes, including the conflict between Colombia and Venezuela in 2008.</p>
<p>Meanwhile, it is almost certain that the outcome of Mexico’s important July 2012 presidential election will be determined less by ideological swings in one direction or another and more by the electorate’s confidence in a candidate’s ability to tackle the grave problems of drug-related violence and organized crime, along with profound economic challenges and corruption. Although many analysts pointed to a severe ideological cleavage during the country’s closely contested and disputed 2006 presidential election between Felipe Calderón of the conservative National Action Party (PAN) and Andrés Manuel López Obrador of the left-leaning Party of the Democratic Revolution (PRD), Jorge Domínguez has argued that Mexico’s voters, more so than its political parties, were located in the political center of the left-right continuum.</p>
<p>Moreover, the Institutional Revolutionary Party (PRI), which had ruled the country for some seven decades before the PAN came to power in 2000 and had evolved from its original revolutionary roots to become a nonideological, establishment party, made significant gains in the July 2009 legislative elections. The PRI’s strength in those contests and its reasonably good prospects for regaining control of the presidency in 2012 suggest that citizens may be moving away from the more ideological parties. Instead, voters are concerned foremost with practical matters—primarily the country’s rapidly deteriorating security situation.</p>
<p>Indeed, pervasive criminality represents the most serious threat to more centrist politics and more effective democratic governance throughout Latin America (including much of Central America and particularly Guatemala, where organized crime risks producing more old-fashioned authoritarian reactions). In Mexico, since Calderón took office in 2006 and tasked the armed forces with fighting the drug cartels, there have been more than 30,000 deaths. Although security specialists are quick to point out that the overall level of violence in Mexico is comparable to that of other countries in the region, the savagery of the killings—and their concentration in such cities as Cuidad Juárez along the U.S. border—make the situation particularly alarming. In addition, the widespread public perception of unchecked violence raging between ruthless cartels makes it extremely difficult for elected officials to practice moderate politics. Nonetheless, despite the huge differences between Mexico and Brazil, for example, Mexico, Central America, and the Caribbean for the most part appear to share South America’s growing penchant for pragmatic centrism.</p>
<p><strong>Signs of Unease</strong></p>
<p>Some recent political developments in Latin America suggest that, while there is broad consensus on major economic and social policies in much of the region, there is also some measure of dissatisfaction with politics as usual. Young voters in particular, many from the region’s expanding middle classes, have been sending strong messages to the political establishment that they want cleaner and more open government, including an end to cronyism. Worries over corruption have figured strongly in a number of key elections in Latin America over the past year. These results should be interpreted as a warning against complacency about a region that in general still appears to be moving, however slowly, in the direction of greater progress on a number of political and economic fronts.</p>
<p>The biggest surprise coming out of Chile’s last presidential election, for example, was the emergence of Marco Enríquez-Ominami, formerly of the Socialist Party, who was neither with the center-left Concertación nor the center-right Alliance. In a country with arguably the region’s most highly structured and predictable party system—one that consistently offers voters a pair of clear options—it was striking that in the first round of balloting Enríquez-Ominami won more than a fifth of the vote. He fared particularly well among younger, middle-class voters who had grown weary of the center-left coalition yet did not feel drawn to the center-right. Even in Chile, the region’s best economic and political performer in recent years, there is a growing constituency that is pressing for institutional renewal and more open and competitive politics.</p>
<p>In Colombia as well, the most unexpected feature of the last election was the surge of the Green Party’s Mockus. To be sure, the Mockus phenomenon eventually fizzled and he lost badly to Uribe’s successor in the runoff. But Mockus’s dramatic jump in credible polls months before the election can be construed as a rejection of the corrupt politics associated with the country’s traditional political system. Mockus polled extremely well in major cities, particularly among young Colombians belonging to the middle classes. His supporters, disillusioned with the mounting scandals that came to light toward the end of Uribe’s second term, pressed for greater government accountability and transparency. Mockus’s support also derived to a large extent from his conciliatory style, which contrasted sharply with the confrontational politics that Colombians had grown accustomed to under Uribe in recent years. In a well-organized and structured political system such as Colombia’s, the Mockus phenomenon, however fleeting, was significant. It reflects a growing sensibility in Latin America—one that, in the Colombian case, President Santos has wisely heeded and incorporated into his own governing style.</p>
<p>Finally, what was most remarkable in Brazil’s 2010 election was not Rousseff’s victory so much as the surprisingly strong first-round showing made by Green Party candidate and former environmental minister Marina Silva. No one predicted that she would be able to muster 19 percent, forcing a runoff. Silva ran as an outsider, challenging the two conventional candidates. Like Enríquez-Ominami in Chile and Mockus in Colombia, Silva drew the bulk of her support from the younger, middle-class voters concentrated in Brazil’s major cities. Although most Brazilians are highly optimistic and favor continuity with the economic and social policies put in place by Lula, they wanted to send a message to the political establishment that they are troubled by some of the recent corruption scandals, including one that had implicated Rousseff’s successor as Lula’s chief of staff.</p>
<p>To be sure, the sizeable votes for Enríquez-Ominami, Mockus, and Silva express somewhat different phenomena and reflect specific national characteristics. For example, despite its name, Colombia’s Green Party has no particular allegiance to environmental concerns. This is not the case, of course, with the Green Party in Brazil, where such concerns are especially pronounced in certain sectors of society. Nonetheless, there are some commonalities in these and other situations in Latin America that indicate a strong and widespread desire for clean government and a demand for more open politics.</p>
<p>At the start of 2011, there is reason for considerable optimism about the general direction of economic and political affairs in Latin America. Given the vagaries of global circumstances, continued economic reliance on commodities, resistance to institutional reforms, and substantial democratic deficits in a number of countries, however, it is unclear whether the current situation will last. Many observers are also worried about a certain complacency toward the status quo, which would render the region less competitive economically and less robust politically than it can and should be.</p>
<p>Still, though it is risky to extrapolate from today’s realities, current tendencies suggest that,  despite a few exceptions and sharp differences among the countries, the region as a whole will continue to move toward more pragmatic, centrist politics. Latin America’s links to the rest of the world will only grow in number and strength, and its middle classes will probably continue to expand in coming years. Economic growth may be too modest and equity gains too slow and meager, but it is reasonable to expect continued progress, particularly in countries such as Brazil, whose size and significance make it a bellwether for the rest of the region.</p>
<p>Although significant problems remain, Latin America’s recent success at reducing poverty and generating a growing middle class bodes well for future democratic gains. Electoral choices and outcomes are likely to reflect government performance, especially the ability to solve such pressing problems as crime and unemployment. Ideological groups will remain on the scene and in some cases will define politics, but their numbers and strength will probably dwindle. Globalization, no doubt, has a dark side—particularly as regards the spread of organized crime, which has had devastating consequences for the rule of law in Latin America. In general, however, the deepening ties between the region and the rest of the world have had salutary economic and political effects.</p>
<p>The waning of unstable ideological politics and the move toward greater pragmatism and moderation mean that the old ways of seeing and talking about Latin America need an overhaul. Increasingly, the region is behaving politically much like other parts of the world, where standards of performance and effectiveness are decisive in determining electoral choices and outcomes. The trend that is now underway in this highly differentiated region is far from irreversible and is bound to suffer setbacks. Yet in the context of new global realities—and Latin America’s deepening connections to them—the move toward centrist politics may well become ingrained.</p>
<p>&nbsp;</p>
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		<title>Mexico Under Siege Map 2011</title>
		<link>http://focusmexico.wordpress.com/2011/01/18/mexico-under-siege-map-2011/</link>
		<comments>http://focusmexico.wordpress.com/2011/01/18/mexico-under-siege-map-2011/#comments</comments>
		<pubDate>Tue, 18 Jan 2011 18:57:32 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Seguridad Pública]]></category>
		<category><![CDATA[Narcotics Trafficking]]></category>
		<category><![CDATA[Ciudad Juarez]]></category>
		<category><![CDATA[David Shirk]]></category>
		<category><![CDATA[drug related homicide]]></category>
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		<category><![CDATA[violencia]]></category>

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		<description><![CDATA[Fuente: http://projects.latimes.com/mexico-drug-war/#/interactive-map This continues to be a great resource for English coverage of drug related violence in Mexico and offers an interactive map that elegantly displays data aggregated by David Shirk&#8217;s Trans-Border Institute from weekly reporting from Reforma newspaper in Mexico City.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=308&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Fuente: <a href="http://projects.latimes.com/mexico-drug-war/#/interactive-map">http://projects.latimes.com/mexico-drug-war/#/interactive-map</a></p>
<p>This continues to be a great resource for English coverage of drug related violence in Mexico and offers an interactive map that elegantly displays data aggregated by David Shirk&#8217;s Trans-Border Institute from weekly reporting from Reforma newspaper in Mexico City.</p>
<p><a href="http://focusmexico.files.wordpress.com/2011/01/untitled.jpg"><img class="aligncenter size-full wp-image-312" title="Untitled" src="http://focusmexico.files.wordpress.com/2011/01/untitled.jpg?w=664&#038;h=372" alt="" width="664" height="372" /></a><img src="//896D0F8F-76CB-4D1F-97AF-4D34E25DEDD1/image.tiff" alt="" /></p>
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		<title>2008 10 29: In Mexico, an Unstanched Flow of Drug Money</title>
		<link>http://focusmexico.wordpress.com/2009/10/18/2008-10-29-in-mexico-an-unstanched-flow-of-drug-money/</link>
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		<pubDate>Sun, 18 Oct 2009 21:29:45 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Administration of Justice]]></category>
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		<category><![CDATA[Colima]]></category>
		<category><![CDATA[Economy]]></category>
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		<category><![CDATA[Narcotics Trafficking]]></category>
		<category><![CDATA[Amezcua Contreras]]></category>
		<category><![CDATA[China]]></category>
		<category><![CDATA[Comisión Nacional Bancaria y de Valores]]></category>
		<category><![CDATA[Drug Smuggling]]></category>
		<category><![CDATA[drugs]]></category>
		<category><![CDATA[DTOs]]></category>
		<category><![CDATA[Merida Initiative]]></category>
		<category><![CDATA[Meth]]></category>
		<category><![CDATA[Mexico]]></category>
		<category><![CDATA[money laundering]]></category>
		<category><![CDATA[Narcotrafficking]]></category>
		<category><![CDATA[PGR]]></category>
		<category><![CDATA[Procuraduría General de la República]]></category>
		<category><![CDATA[SEIDO]]></category>
		<category><![CDATA[Zhenli YeGon]]></category>

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		<description><![CDATA[Source: AP &#38; Washington Post A grim reminder of what drives Mexican DTOs, political corruption, weapons purchases and organized criminal enterprise &#8230; An old article from Maurizio Guerrero Martínez, writer for Mexico&#8217;s Poder y Negocios. Even though an estimated $24 billion in criminal funds courses through Mexico each year, no Mexican financial institution has been publicly [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=303&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Source: AP &amp; <a href="http://www.washingtonpost.com/wp-dyn/content/article/2008/10/28/AR2008102801374_pf.html">Washington Post</a></p>
<p>A grim reminder of what drives Mexican DTOs, political corruption, weapons purchases and organized criminal enterprise &#8230;</p>
<div class="wp-caption aligncenter" style="width: 650px"><img title="Zhenli Ye Gon" src="http://paulrwest.com/images/Drug%20Money%20jpg.jpg" alt="Zhenli Ye Gons home stash... didnt have a safe big enough, I guess?" width="640" height="480" /><p class="wp-caption-text">Zhenli Ye Gon&#39;s home stash... didn&#39;t have a safe big enough, I guess?</p></div>
<p>An old article from <strong>Maurizio Guerrero Martínez,</strong> writer for Mexico&#8217;s <a style="color:#993300;" href="http://www.poder360.com/article_detail.php?id_article=600" target="_blank">Poder y Negocios</a>.</p>
<p>Even though an estimated $24 billion in criminal funds courses through Mexico each year, no Mexican financial institution has been publicly sanctioned for money laundering. The country has long been a center for drug trafficking, and a world record was set for a criminal cash seizure when $205 million was found last year in Mexico City tied to a Chinese-Mexican businessman who has been jailed in the United States on methamphetamine-related charges.</p>
<p>Experts fear that Mexico&#8217;s lack of aggressiveness against money laundering could contribute to global instability by allowing financing to flow to terrorists or subversive groups around the world &#8212; as has happened with the FARC guerrillas in Colombia.</p>
<p>U.S. officials estimate that 10 percent of the Mexican financial system operates with laundered drug money, according to Jonathan Winer, a Washington-based expert on international money laundering.</p>
<p>&#8220;It&#8217;s hard to understand how that much money could be moving around without any evidence of it,&#8221; Winer said.</p>
<p>Winer said that the United States has had money laundering laws on the books for years but that they were not seriously enforced until federal bank regulators started levying large fines.</p>
<p>Pablo Gómez del Campo, an official with Mexico&#8217;s chief federal bank regulator, Comisión Nacional Bancaria y de Valores (CNBV), insisted that his government does impose sanctions in money laundering cases. But his agency&#8217;s Web site does not list any fines against institutions, even though the law requires it to do so.</p>
<p>On July 17, the Mexican agency in charge of prosecuting money laundering, Procuraduría General de la República (PGR), announced a legal action against an exchange house &#8212; Casa de Cambio Catorce. It marked the first money laundering prosecution to stem from an investigation of country&#8217;s financial system by the Financial Intelligence Unit (UIF), the Mexican agency charged with investigating financial crimes.</p>
<p>Two other Mexican exchange houses, Puebla and Majapara, are currently on trial for charges that emerged from investigations by U.S. authorities.</p>
<p>Concerns about money laundering have taken on new urgency in an age of global terrorism. After the attacks on the World Trade Center and the Pentagon on Sept. 11, 2001, the U.S. government toughened the penalties for institutions with poor money laundering controls, affecting not only terrorists&#8217; assets, but those of drug traffickers, too. Investigators focused, however, on money flowing to terrorists through Islamic charities based in the United States and elsewhere. That approach played down the U.S. interest in drug trafficking and its financing in Latin America, according to Douglas Farah, author of &#8220;Blood From Stones: The Secret Financial Network of Terror&#8221; and an expert in the financial operations of criminal networks.</p>
<p>But authorities are seeing evidence that terrorist money and drug money can flow through the same channels.</p>
<p>&#8220;A pipeline has been created from South America to the United States, where drugs, people, weapons and cash are trafficked, and that could be used for any aim, even by subversive groups. The ideologies no longer matter &#8212; only the money,&#8221; Farah said. &#8220;The free flow of information and money has changed everything. Mexican, Colombian and Middle East terrorist groups are increasingly connected. The limits that existed before are blurring.&#8221;</p>
<p>The U.S. State Department has denied that terrorist cells exist in Mexico. Nevertheless, in 2005 a British citizen, Amer Haykel, an alleged al-Qaeda member, was arrested in Baja California. According to a U.S. intelligence assessment provided by Winer, there is evidence of Islamist terrorist cells in Mexico, including a Hezbollah presence in the southern state of Chiapas.</p>
<p>Over the years, money laundering enforcement has proved the most effective tool for cracking down on the drug trade. Without cash, the criminal networks fall into a downward spiral.</p>
<p>&#8220;If you take away their money, they can&#8217;t pay their sources of supply, they lose credibility, and they can&#8217;t pay bribes and employees,&#8221; said Allan Doody, a former U.S. federal agent who now works as the principal analyst for the Homeland Security Institute, a research center that receives funding from the U.S. government.</p>
<p>Winer said the Mexican strategy should be to better regulate the centros cambiarios &#8212; exchange centers that act as global cash transmitters &#8212; and also to better monitor transactions between Mexican institutions and offshore banks, which he described as &#8220;opaque, and difficult to evaluate and document.&#8221;</p>
<p>Even with laws on the books, enforcement is difficult.</p>
<p>&#8220;It is not easy to align the legal infrastructure to prosecute money laundering,&#8221; explains Don Semesky, head of financial investigations for the Drug Enforcement Administration (DEA) in Washington. &#8220;There&#8217;s a lot of obstacles within the bureaucracy. To put the things in place takes a lot of time.&#8221;</p>
<p>The obstacles can be seen in the way the Mexican federal prosecutor, the PGR, investigates a financial crime. To respect the banking secrecy laws, the PGR must ask for the information through the CNBV, the Mexican bank regulator. CNBV can refuse the request, and in that case the dispute will end up before a judge. During the trial, the person whose account is in dispute is warned, so he has time to move his money before the investigation can be completed.</p>
<p>Seizures of cash have increased in Mexico in recent years. But except for Casa de Cambio Catorce, financial institutions have largely escaped seizures and penalties.</p>
<p>One reason may be lack of resources.</p>
<p>In 2008, the budget for UIF, the government&#8217;s financial investigative arm, was less than $6 million, or 0.16 percent of the budget of the Finance Ministry, which supervises UIF. The ministry spends four times that much on communications and public relations. The office that prosecutes money launderers has a budget of $3 million, just 0.3 percent of the federal prosecutor&#8217;s budget. The office&#8217;s director has changed three times since 2005.</p>
<p>The Merida Initiative &#8212; the U.S. government&#8217;s main program to help Mexico combat the drug trade &#8212; spends 1.25 percent of its $400 million budget on money laundering. That $5 million goes to updating computers.</p>
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		<title>Dhaval Dave: Effects of Cocaine and Heroin Price on Drug-Related Emergency Department Visits</title>
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		<pubDate>Sun, 18 Oct 2009 07:28:38 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[International Cooperation]]></category>
		<category><![CDATA[Narcotics Trafficking]]></category>
		<category><![CDATA[cocaine]]></category>
		<category><![CDATA[counter-narcotics policy]]></category>
		<category><![CDATA[econometrics]]></category>
		<category><![CDATA[economic analysis]]></category>
		<category><![CDATA[failure]]></category>
		<category><![CDATA[heroin]]></category>
		<category><![CDATA[interdiction policy]]></category>
		<category><![CDATA[policy analysis]]></category>
		<category><![CDATA[price elasticity]]></category>
		<category><![CDATA[public health]]></category>
		<category><![CDATA[substance abuse]]></category>
		<category><![CDATA[war on drugs]]></category>

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		<description><![CDATA[Source: Journal of Health Economics 25 (2006) 311-333, Dhaval Dave of Bentley University and the National Bureau of Economic Research, Department of Economics, 175 Forest Street, AAC 195, Waltham, MA 02452, USA Abstract This paper estimates the empirical relationship between cocaine and heroin prices and drug-related hospital&#160;ED admissions for 21 U.S. cities. These outcomes bypass [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=295&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p><b><span style="font-weight:normal;"><b>Source:</b> Journal of Health Economics 25 (2006) 311-333, Dhaval Dave of Bentley University and the National Bureau of Economic Research, Department of Economics, 175 Forest Street, AAC 195, Waltham, MA 02452, USA</span></b></p>
<div><b><b>Abstract</b></b></div>
<div><b>This paper estimates the empirical relationship between cocaine and heroin prices and drug-related hospital&nbsp;ED admissions for 21 U.S. cities. These outcomes bypass some of the problems with self-reports and&nbsp;directly measure a component of healthcare costs associated with heavy drug usage. The price elasticity&nbsp;of the probability of a cocaine and heroin episode is estimated at −0.27 and −0.10, respectively. A 10%&nbsp;increase in prices can prevent 10,723 cocaine and heroin-related ED visits, with cost savings between $21&nbsp;million and $47 million. These low magnitudes of the drug outcome-price response have implications forthe cost-effectiveness of enforcement-driven price increases.</b></div>
<p><span style="color:rgb(255,0,0);"><b>Tel.: +1 781 891 2268; fax: +1 212 817 1597.</b></span></p>
<p><span style="color:rgb(255,0,0);"><b>E-mail address: ddave@bentley.edu.</b></span></p>
<p><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="line-height:18px;white-space:pre;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"><span style="line-height:19px;white-space:normal;"><b> </b></span></span></span></span></p>
<p><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"> </span></p>
<p><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"> </span></p>
<p><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></p>
<div class="Section1">
<p class="Default"><b><span style="color:windowtext;"> </span></b></p>
</div>
<div class="Section2">
<p class="CM31" style="text-align:center;line-height:22.55pt;" align="center"><span style="font-size:17pt;"><b>The effects of cocaine and heroin price on drug-related<br />
emergency department visits<br />
</b></span><span style="font-size:13pt;"><b>Dhaval Dave </b></span><b><sup><span style="font-size:13pt;font-family:'Cambria Math',serif;position:relative;top:-5pt;">∗</span></sup><sup><span style="font-size:13pt;position:relative;top:-5pt;"> </span></sup></b></p>
<p><b><span style="font-size:13pt;"> </span></b></p>
<p class="CM23" style="text-align:center;line-height:10pt;" align="center"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Bentle</span></i><span style="font-size:8pt;">y </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Universit</span></i><span style="font-size:8pt;">y </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">an</span></i><span style="font-size:8pt;">d </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Nationa</span></i><span style="font-size:8pt;">l </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Burea</span></i><span style="font-size:8pt;">u </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">o</span></i><span style="font-size:8pt;">f </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Economi</span></i><span style="font-size:8pt;">c </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Research</span></i><span style="font-size:8pt;">, </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Departmen</span></i><span style="font-size:8pt;">t </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">o</span></i><span style="font-size:8pt;">f </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Economics</span></i><span style="font-size:8pt;">, </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">17</span></i><span style="font-size:8pt;">5 </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Fores</span></i><span style="font-size:8pt;">t </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Street</span></i><span style="font-size:8pt;">, </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">AA</span></i><span style="font-size:8pt;">C </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">195</span></i><span style="font-size:8pt;">, </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Waltham</span></i><span style="font-size:8pt;">, </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">M</span></i><span style="font-size:8pt;">A </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">02452</span></i><span style="font-size:8pt;">, </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">US</span></i><span style="font-size:8pt;">A</span></b></p>
<p class="CM24" style="text-align:center;line-height:10pt;" align="center"><span style="font-size:8pt;"><b>Received 30 October 2004; received in revised form 5 August 2005; accepted 11 August 2005<br />
Available online 26 September 2005</b></span></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section3">
<p class="CM24" style="text-align:center;line-height:10pt;" align="center"><span style="font-size:8pt;"><b> </b></span></p>
<p class="CM23" style="line-height:10pt;"><b><b><span style="font-size:9pt;font-family:'EGMJL L+ Times',serif;">Abstract</span></b><span style="font-size:9pt;font-family:'EGMJL L+ Times',serif;"> </span></b></p>
<p class="CM22" style="text-indent:9pt;line-height:11pt;"><span style="font-size:9pt;"><b>This paper estimates the empirical relationship between cocaine and heroin prices and drug-related hospital ED admissions for 21 U.S. cities. These outcomes bypass some of the problems with self-reports and directly measure a component of healthcare costs associated with heavy drug usage. The price elasticity of the probability of a cocaine and heroin episode is estimated at </b></span><span style="font-size:9pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>−</b></span><span style="font-size:9pt;"><b>0.27 and </b></span><span style="font-size:9pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>−</b></span><span style="font-size:9pt;"><b>0.10, respectively. A 10% increase in prices can prevent 10,723 cocaine and heroin-related ED visits, with cost savings between $21 million and $47 million. These low magnitudes of the drug outcome-price response have implications for the cost-effectiveness of enforcement-driven price increases. © 2005 Elsevier B.V. All rights reserved.</b></span></p>
<p class="CM22"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">JEL classiﬁcation: I1</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="Default" style="margin-bottom:44.75pt;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;color:windowtext;">Keywords</span></i><span style="font-size:8pt;color:windowtext;">: Cocaine; Heroin; Drug abuse; Emergency department; Price</span></b></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;">1. Introduction</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;"> </span></b></p>
<p class="CM27" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;"><b>Much of current drug control policy in the United States focuses on interdiction programs aimed at stopping the ﬂow of drugs. The U.S. spends approximately $26 billion a year towards apprehension and punishment of drug offenders, the bulk of this aimed at dealers and sellers (<span style="color:rgb(0,0,100);">Ofﬁce of National Drug Control Policy, 2001</span><span style="color:black;">). From an economic perspective, such drug enforcement, by raising the cost of supplying drugs to the U.S. market, acts as a non-monetary tax and increases</span></b></span></p>
</div>
<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section4">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
</div>
<div class="Section5">
<p class="CM25" style="text-align:justify;text-indent:12.25pt;"><span style="font-size:8pt;"><b> </b></span></p>
</div>
<div class="Section6">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section7">
<p class="CM22" style="text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>the transaction price of drugs.</b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-4pt;">1 </span></sup><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">Hence, a critical question concerns the extent to which drug use responds to prices, especially heavy or problematic use. Since manipulating prices is one mode of control that the public sector can exercise on the market for addictive unhealthy substances, empirical estimates of the relation between price variations and illicit drug consumption are key to informing and shaping public policy.</span></b></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>This paper estimates the empirical relationship between the prices of cocaine and heroin and objective indicators of their use. The set of outcomes is drug-related emergency room admissions where cocaine and heroin are cited, derived from the Drug Abuse Warning Network (DAWN). While this study is related to the new and growing empirical literature dealing with the price sensitivity of illegal drug consumption, it improves upon the prior estimates in a number of ways. The illegal drug use indicators employed in much of the literature are based on self-reports and may be measured inaccurately. In contrast, the indicators used in the present study are an alternative measure based on objective outcomes related to consumption. Moreover, much of the literature, by relying on self-reported national surveys, does not consider consumption by certain subgroups, who may behave very differently from the population at large. The persons sampled in DAWN are not representative of the general population. In particular, the focus is on persons whose substance use resulted in a visit to a hospital emergency room. These individuals are much more likely to be hardcore or chronic users of drugs than the users reﬂected in national surveys. Thus, they also impose the heaviest costs on society and are the target of much illegal drug policy. There were 19,698 deaths from drug-induced causes in 2000, up over 16% since 1998. Health care costs associated with drug abuse were estimated at around $15 billion for 2000, an increase of almost 40% since 1992 (</b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>ONDCP, 2003</b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>). In this respect, an estimate of the effect of drug prices on drug-related emergency department (ED) episodes is valuable in that it directly relates drug prices, an instrument of enforcement efforts, to the health consequences of heavy drug use.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>Many studies based on survey data also rely on the respondent’s state of residence as the geographic unit. Consequently, when estimating price responsiveness, these researchers have had to employ a state-average price despite the fact that there is considerable inter-city variation in drug prices even within a given state. This measurement error may lead to biased estimates. The present study overcomes this limitation by computing and merging drug prices at the city level. This analysis further exploits the time-series of city cross-sections and estimates various ﬁxed effects speciﬁcations to account for endogeneity and control for unmeasured factors that may be correlated with price and consumption.</b></span></p>
<p class="CM26" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>The remainder of the study proceeds as follows. Section </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>2 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>reviews prior empirical studies dealing with the price sensitivity of the consumption of illegal drugs. Section </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>3 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>describes the data assembled for use in this study. Section </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>4 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>outlines the analytical models that guide the empirical speciﬁcations. Section </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>5 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>presents the results and Section </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>6 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>offers some concluding remarks.</b></span></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:black;">2. Prior studies</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:black;"> </span></b></p>
<p class="CM24" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:black;"><b>There is a rapidly growing empirical literature by economists dealing with the price sensitivity of consumption of illegal drugs. These demand studies primarily draw on illegal drug prices</b></span></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">1 </span></sup><span style="font-size:8pt;color:black;">Costs for drug suppliers increase because: (1) they are forced to use underground distribution and transportation channels that can be hidden from authorities, (2) some drug shipments are captured by the authorities and destroyed, (3) suppliers are forced to use the threat of violence or other relatively costly methods to enforce their contracts rather than use the court system and (4) because of ﬁnes and imprisonment.</span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section8">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333 313</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section9">
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>derived from local purchases made by drug enforcement agents while undercover. The studies typically combine these prices with self-reported measures of drug use from such national surveys as the National Household Survey of Drug Abuse (NHSDA) and Monitoring the Future.&nbsp;<span style="color:rgb(0,0,100);">Grossman et al. (2002) </span><span style="color:black;">provides a good review of this literature.</span></b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>While the weight of the evidence from these studies suggests that cocaine and heroin use do respond negatively to price, there is little consensus about the magnitudes of the own-price elasticities. The illegal drug use indicators in the studies just cited may be plagued by inaccuracies if self-reports are subject to response error, and such surveys also fail to capture many hardcore or chronic drug users.</b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-3.5pt;">2</span></sup><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">These considerations have led researchers to consider the price sensitivity of outcomes related to drug consumption. </span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">Model (1993) </span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">ﬁnds that marijuana-related hospital emergency room episodes are positively related to marijuana decriminalization, based on quarterly data from 1975 to 1978 for 21 metropolitan statistical areas (MSA) in the Drug Abuse Warning Network (DAWN). This study capitalizes on the decriminalization of the possession of small amounts of marijuana by 11 U.S. states between 1973 and 1978. This presumably reduced the full price of marijuana. Model does not include the money price of marijuana or other drugs in her study. </span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">Caulkins (2001b) </span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">estimates an elasticity of the number of hospital emergency room mentions for cocaine with respect to own-price of </span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;">−</span><span style="font-size:10pt;color:black;">1.30 and an elasticity of the number of hospital emergency room mentions for heroin with respect to own-price of </span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;">−</span><span style="font-size:10pt;color:black;">0.84. Caulkins employs an annual U.S. time series constructed from DAWN for the years 1978 to 1996. His models simply regress the given outcomes on price and do not control for any other factors that may have varied over time or for time trends.</span></b></p>
<p class="CM22" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:rgb(0,0,100);"><b>Crane et al. (1997) </b></span><span style="font-size:10pt;color:black;"><b>employ aggregate time series from DAWN in order to estimate the price elasticity of demand for cocaine ranging from </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.29 to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.63. This study also fails to control for time trends. </b></span><span style="font-size:10pt;color:rgb(0,0,100);"><b>Hyatt and Rhodes (1995) </b></span><span style="font-size:10pt;color:black;"><b>ﬁnd that cocaine price is negatively related to the number of cocaine emergency room episode mentions, from DAWN. While this study adds city indicators to control for unobserved factors at the city level, it also does not control for time trends or any other factors that may have shifted over time. Furthermore, the price of cocaine is not adjusted for inﬂa tion. Since year indicators are not included, this leads to biased estimates. Thus, it is difﬁcult to ascertain from these studies whether the negative correlation between the outcomes and price rep resents a causal effect or whether it reﬂects a spurious correlation due to other unobserved factors.</b></span></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:black;">3. Data</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:black;"> </span></b></p>
<p class="CM30" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:black;"><b>The empirical work is based on objective outcomes related to cocaine and heroin consumption derived from the Drug Abuse Warning Network (DAWN). Since the early 1970’s, DAWN has provided information on the use of emergency departments (ED) in the U.S. for the treatment of drug-related health problems. It is an ongoing national probability survey conducted annually in 21 large metropolitan areas by the Substance Abuse and Mental Health Services Administration (SAMHSA).</b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">3 </span></sup><span style="font-size:10pt;color:black;">A consistently sampled time-series of the 21 cities from 1990 to 2002 was obtained</span></b></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">2 </span></sup><span style="font-size:8pt;color:black;">For instance, since drug use is signiﬁcantly higher among respondents who live in households considered unstable, the NHSDA’s bias towards sampling stable households is likely to overlook many heavy drug users. A comparison of heavy cocaine users in the NHSDA with those in other sources shows a marked difference with respect to demographic characteristics. In the NHSDA, income is higher, unemployment is lower and fewer respondents report using more than one drug. See </span><span style="font-size:8pt;color:rgb(0,0,100);">Rhodes et al. (2001)</span><span style="font-size:8pt;color:black;">.</span></b></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">3 </span></sup><span style="font-size:8pt;color:black;">The DAWN cities are Atlanta, Baltimore, Boston, Buffalo, Chicago, Dallas, Denver, Detroit, Los Angeles, Miami, Minneapolis, New Orleans, New York City, Newark, Philadelphia, Phoenix, St. Louis, San Diego, San Francisco, Seattle and Washington, D.C.</span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section10">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section11">
<p class="CM22" style="text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>from SAMHSA. DAWN collects information on patients seeking hospital emergency department (ED) treatment related to their use of an illicit drug. For the more recent years, DAWN also documents the reason for the ED admission, the majority of which are due to drug overdose, chronic effects, withdrawal, and seeking detoxiﬁcation, and the rest are due to accident or injury, unexpected reaction, or other undocumented reasons. To be included in DAWN, the patient must be age 6 years or older, be treated in the hospital’s emergency department, and have a problem induced by or related to drug use, regardless of when the drug ingestion occurred. Eligible hospitals in the DAWN sample are non-Federal, short-stay general hospitals that have a 24-hour emergency department. Within each participating facility, a trained reporter, usually a nurse or a member of the ED or medical records staff, is responsible for reviewing medical charts for indications noted by the treating physician that the episode was drug-related.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>A drug episode is deﬁned as an emergency department visit that is directly related to the use of an illegal drug or the non-medical use of a legal drug.</b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-3.5pt;">4 </span></sup><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">In addition, DAWN also identiﬁes the substances associated with the drug abuse episodes. Up to four substances may be reported or “mentioned” for each drug-related episode; thus, the total number of mentions exceeds the number of episodes. Much of the time, however, only one drug is mentioned. Based on these data, a variable measuring the probability of a drug-related episode is deﬁned as total drug-related ED episodes in each metropolitan statistical area (MSA) divided by population. For the sample analyzed in this study, there are 314 such episodes per 100,000 persons. Similar rates are also deﬁned for cocaine mentions and heroin mentions. There are 119 cocaine mentions and 65 heroin mentions per 100,000 persons. DAWN medical crises occur in a small fraction of the drug abusing population. Data from the National Comorbidity Survey show that about 6% of the adult population was diagnozed with a drug abuse or dependence disorder in 1991 (</span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">Kessler et al., 1994</span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">). Applied to the mean MSA population for 1991, this translates to about 215,000 individuals with a drug disorder. The mean number of drug-related episodes for the same year was 9574. This means that about 22 additional serious abusers are required to generate one extra DAWN drug episode. Thus, these outcomes deﬁned from DAWN are intended to capture serious health consequences related to hardcore drug use. Means for the DAWN sample are presented in </span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">Table 1</span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">.</span></b></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>Since the outcomes are measured at the metropolitan level, additional MSA-level socioeco nomic variables are included in all models to capture time-varying trends within cities. Personal income per capita is derived from the </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>Bureau of Economic Analysis </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>website and deﬂated by the national consumer price index reported by the </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>Bureau of Labor Statistics</b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>. Total MSA population is obtained from the U.S.</b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>Bureau of Census</b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>. Indicators measuring the percentage of MSA pop ulation that is male, black, other race, Hispanic, ages 16–24, ages 25–54, high school graduate and college graduate are constructed from the Current Population Survey March supplements. In order to capture local labor market conditions, the unemployment rate in each MSA is also included in all models. Data on unemployment are obtained from the Bureau of Labor Statistics, and in some cases also calculated from the March supplements of the Current Population Survey.</b></span></p>
<p class="CM24" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>Indicators of local enforcement efforts are also appended. Variables measuring the probability of arrest for drug possession and drug sale are computed from the FBI’s Uniform Crime Reporting System. Ideally, the probability of arrest is constructed by dividing the total number of arrests in each category by the total number of drug users and dealers in the MSA or some proxy for total drug activity. However, as there are no reliable estimates of the number of drug users and</b></span></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;font-family:'EGMJK K+ Times',serif;color:black;position:relative;top:-3pt;">4 </span></sup><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;color:black;">Since one person may make repeated visits, the number of ED episodes reported in DAWN is not synonymous with the number of individuals seeking such treatment.</span></b></p>
</div>
<p><b> </b></p>
<table class="MsoNormalTable" style="cursor:default;width:383.15pt;border-collapse:collapse;" border="1" cellpadding="0" cellspacing="0" width="511">
<tbody>
<tr style="height:13.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:297.5pt;height:13.5pt;margin:8px;padding:0 5.4pt;" colspan="2" valign="top" width="397">
<p class="Default"><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:51.65pt;height:13.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="69">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:34pt;height:13.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="45">
<p class="Default" style="text-align:center;" align="center"><span style="font-size:8pt;">315</span></p>
</td>
</tr>
<tr style="height:28.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:297.5pt;height:28.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" colspan="2" width="397">
<p class="Default"><span style="font-size:8pt;">Table 1 Sample means</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:51.65pt;height:28.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="69">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:34pt;height:28.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="45">
<p class="Default" style="text-align:center;" align="center"><span style="color:windowtext;"> </span></p>
</p>
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<tr style="height:9.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:71.5pt;height:9.25pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="95">
<p class="Default"><span style="font-size:8pt;">Variable</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:226pt;height:9.25pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="301">
<p class="Default"><span style="font-size:8pt;">Deﬁnition</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:51.65pt;height:9.25pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="69">
<p class="Default" style="text-align:center;" align="center"><span style="font-size:8pt;">Mean</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:34pt;height:9.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="45">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;margin:8px;" width="95"></td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;margin:8px;" width="301"></td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;margin:8px;" width="69"></td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;margin:8px;" width="45"></td>
</tr>
</tbody>
</table>
<p><b><span style="font-weight:normal;"><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></span></b></p>
<div class="Section11">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22"><b>Drug episode rate</b></p>
<p class="CM30" style="margin-right:13.9pt;"><b>Logistic drug episodes Cocaine mention rate</b></p>
<p class="CM30" style="margin-right:3.15pt;"><b>Logistic cocaine mentions Heroin mention rate</b></p>
<p class="CM30" style="margin-right:6.4pt;"><b>Logistic heroin mentions Cocaine price</b></p>
<p class="CM30"><b>Heroin price</b></p>
<p class="CM22"><b>Personal income</b></p>
<p class="CM22"><b>Unemployment Male Black Other</b></p>
<p class="CM22" style="margin-right:47.25pt;"><b>Hispanic Age 16–24 Age 25–54 High school</b></p>
<p class="CM22"><b>College</b></p>
<p class="CM22"><b>Response rate</b></p>
<p class="CM22"><b>log response rate Drug possession arrest rate</b></p>
<p class="CM22"><b>Drug violation arrest rate</b></p>
<p class="CM30"><b>Drug sale arrest rate</b></p>
<p class="CM30"><b>Cocaine sale arrest rate</b></p>
<p class="CM30"><b>Marijuana sale arrest rate</b></p>
<p class="Default" style="margin-right:44.15pt;"><span style="color:windowtext;"><b>Population Observations Total drug-related emergency department episodes in each MSA divided by MSA population log of the odds of drug episode rate Total number of times cocaine was mentioned in the emergency department drug episodes in each MSA divided by MSA population log of the odds of cocaine mention rate Total number of times heroin was mentioned in the emergency department drug episodes in each MSA divided by MSA population log of the odds of heroin mention rate Price of one pure gram of cocaine, based on all purchases, divided by the annual national consumer price index Price of one pure gram of heroin, based on all purchases, divided by the annual national consumer price index Per capita personal income in each MSA, divided by the annual national consumer price index Unemployment rate in each MSA Percent of MSA population that are male Percent of MSA population that are black Percent of MSA population that are of a race other than white or black Percent of MSA population that are Hispanic Percent of MSA population that are aged 16–24 Percent of MSA population that are aged 25–54 Percent of MSA population that are high school graduates Percent of MSA population that are college graduates Responding sample hospitals as a fraction of total eligible hospitals log of response rate Total number of arrests in each MSA due to any drug possession divided by MSA population Total number of arrests in each MSA due to any drug violation divided by MSA population Total number of arrests in each MSA due to any drug sale or trafﬁcking divided by MSA population Total number of arrests in each MSA due to cocaine sale or trafﬁcking divided by MSA population Total number of arrests in each MSA due to marijuana sale or trafﬁcking divided by MSA population Total MSA Population</b></span></p>
</div>
<p><span style="font-size:12pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section12">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b>0.00314 (0.0013)</b></p>
<p class="CM30" style="text-align:justify;text-indent:-6.1pt;margin:0 7.9pt 19.9pt 6.15pt;"><span style="font-family:'EGMJK J+ MTSY',sans-serif;"><b>−</b></span><b>5.83725 (0.3939) 0.00119 (0.0007)</b></p>
<p class="CM30" style="text-align:justify;text-indent:-6.1pt;margin:0 7.9pt 19.9pt 6.15pt;"><span style="font-family:'EGMJK J+ MTSY',sans-serif;"><b>−</b></span><b>6.95386 (0.7111) 0.00065 (0.0007)</b></p>
<p class="CM30" style="margin-right:3.15pt;"><span style="font-family:'EGMJK J+ MTSY',sans-serif;"><b>−</b></span><b>7.88686 (1.1038) 79.44819 (24.8081)</b></p>
<p class="CM30" style="text-align:justify;"><b>421.81320 (369.0345)</b></p>
<p class="CM22" style="text-align:center;" align="center"><b>17.97189 (2.9212)</b></p>
<p class="CM22" style="text-align:justify;margin:0 7.9pt 9.15pt;"><b>0.05684 (0.0195) 0.47808 (0.0186) 0.15887 (0.1014) 0.05648 (0.0500)</b></p>
<p class="CM22" style="text-align:justify;margin:0 7.9pt 9.15pt;"><b>0.12326 (0.1421) 0.16357 (0.0213) 0.59095 (0.0387) 0.80084 (0.0544)</b></p>
<p class="CM22" style="text-align:justify;margin:0 7.9pt 9.15pt;"><b>0.26220 (0.0586)</b></p>
<p class="CM22" style="text-align:center;" align="center"><b>80.14469 (9.4100)</b></p>
<p class="CM22" style="text-align:center;" align="center"><b>4.37665 (0.1218) 0.00411 (0.0020)</b></p>
<p class="CM22" style="text-align:center;" align="center"><b>0.00601 (0.0028)</b></p>
<p class="CM30" style="text-align:center;" align="center"><b>0.00177 (0.0013)</b></p>
<p class="CM30" style="text-align:center;" align="center"><b>0.00112 (0.0012)</b></p>
<p class="CM30" style="text-align:center;" align="center"><b>0.00034 (0.0003)</b></p>
<p class="CM23" style="margin-right:8.9pt;text-align:justify;"><b>3755332 (2373686) 273</b></p>
</div>
<p><span style="font-size:12pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section13">
<p class="CM23" style="margin-right:8.9pt;text-align:justify;">
<p class="CM10" style="text-align:justify;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Notes: Standard deviations are in parentheses. Number of observations listed represents the maximum number. For some variables, the actual sample size is slightly less due to missing information.</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section14">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i>D. Dave / Journal of Health Economics 25 (2006) 311–333</i></b></p>
</div>
<p><span style="font-size:12pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section15">
<p class="CM22" style="text-align:center;" align="center">
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>dealers by MSA, the denominator is proxied by total MSA population. Variables measuring the total number of arrests in each MSA due to any drug possession, any drug sale or trafﬁcking, any drug-related violation, sale or trafﬁcking in cocaine or opiates and sale or trafﬁcking in marijuana are used to create the corresponding arrest rates.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;"><b>Data on cocaine and heroin prices are computed from purchases made by undercover drug enforcement agents. Information on these purchases including cost, weight and purity is recorded by the Drug Enforcement Agency (DEA) in their System to Retrieve Information from Drug Evidence (STRIDE). The advantage of STRIDE’s transaction-level data is that they directly reﬂect prices on the street. These prices are expected to be relatively accurate because any unreasonable price offer by a DEA agent may raise suspicion on the dealer’s part and endanger the agent. However, because the transactions are of varying size and quality, the cost of each drug must be standardized.</b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">5</span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);"> </span></b></p>
<p class="CM22" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;color:rgb(0,0,100);"><b>Standardized prices of one pure gram of cocaine and heroin in a given metropolitan area for a given year are derived in the following manner:</b></span></p>
</div>
<p><span style="font-size:7.5pt;font-family:'Times New Roman',serif;color:rgb(0,0,100);"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section16">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM12" style="margin-left:23.9pt;text-align:justify;"><b>log cost<i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">ij</span></i><span style="font-size:7.5pt;">t = </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">0 + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">(log predicted purity</span><i><sub><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;position:relative;top:2.5pt;">ijt </span></sub></i><span style="font-size:7.5pt;">+ </span><span style="font-size:10pt;">log weight</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">ij</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">)</span></b></p>
<p class="CM22" style="margin-left:75.9pt;text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>+</b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">2j </span><span style="font-size:10pt;">MSAj + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">3t </span><span style="font-size:10pt;">yeart + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">4</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">j</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">MSAj × yeart + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">υ</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">ij</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">(1)</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section17">
<p class="CM22" style="margin-left:75.9pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM22" style="text-align:justify;line-height:12pt;"><span style="font-size:10pt;"><b>The subscripts denote the </b></span><b><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:10pt;">th transaction in the </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">j</span></i><span style="font-size:10pt;">th MSA for year </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">t</span></i><span style="font-size:10pt;">. Cost refers to the total cost of the purchase, weight is the total gram weight of the purchase, and purity is the weight of the pure drug found in the purchase as a fraction of the total purchase weight. MSA and year refer to dichotomous indicators of each, and MSA × year refers to indicators of the interaction between the two. Predicted purity is obtained from a ﬁrst-stage regression of actual purity on all of these other explanatory variables.</span><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">6 </span></sup><span style="font-size:10pt;color:black;">The price of one pure gram of the drug in MSA j for year t is then imputed as</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section18">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:23.9pt;text-align:justify;"><b>exp (<i><span style="font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">0 + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">2j + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">3t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">π</span></i><span style="font-size:7.5pt;">4</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">j</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">) (2)</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section19">
<p class="CM22" style="margin-left:23.9pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM24" style="text-align:justify;line-height:12pt;"><span style="font-size:10pt;"><b>In the above procedure, purity is treated as endogenous because purchases may depend on expected rather than actual purity (<span style="color:rgb(0,0,100);">Caulkins, 1996</span><span style="color:black;">). Identiﬁcation is achieved by constraining the coefﬁcient on predicted purity to equal that on weight in the second-stage regression (see Footnote 6). In this study, price series based on purity treated as exogenous and estimating </span><span style="color:rgb(0,0,100);">(1) </span><span style="color:black;">with the coefﬁcients unconstrained were experimented with in all models. There are no material changes in the results or conclusions. STRIDE data are available from 1974 to 2003, and all years are used to impute the price series for the periods represented in DAWN. There are 93,004 usable cocaine transactions and 41,088 usable heroin transactions.</span></b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">7 </span></sup><span style="font-size:10pt;color:black;">All price series are deﬂated by the national CPI. The mean</span></b></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">5 </span></sup><span style="font-size:8pt;color:black;">For instance, </span><span style="font-size:8pt;color:rgb(0,0,100);">Caulkins and Padman (1993) </span><span style="font-size:8pt;color:black;">and </span><span style="font-size:8pt;color:rgb(0,0,100);">Rhodes et al. (1994) </span><span style="font-size:8pt;color:black;">show that there are sizable discounts for “whole sale” or large quantity purchases of cocaine.</span></b></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">6 </span></sup><span style="font-size:8pt;color:black;">Eq. </span><span style="font-size:8pt;color:rgb(0,0,100);">(1) </span><span style="font-size:8pt;color:black;">can be justiﬁed by deﬁning the price of one pure gram of drug as: price = cost</span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">/</span></i><span style="font-size:8pt;color:black;">(pure quantity of drug)</span><i><sup><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;position:relative;top:-3.5pt;">π</span></sup></i><span style="font-size:5pt;color:black;">1</span><span style="font-size:8pt;color:black;">, where pure quantity is purity times total weight. Here </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">π</span></i><span style="font-size:6pt;color:black;">1 </span><span style="font-size:8pt;color:black;">captures any non-linear effects of quantity on price, for example due to quantity discounts. In log-linear form, this is log price = log cost − </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">π</span></i><span style="font-size:6pt;color:black;">1 </span><span style="font-size:8pt;color:black;">log purity − </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">π</span></i><span style="font-size:6pt;color:black;">1 </span><span style="font-size:8pt;color:black;">log weight. It is assumed that the standardized price varies between cities and over time. Thus, log price = a + b MSA + c year + d MSA × year. Substituting this expression in the log-linear formulation results in an estimable form, Eq. </span><span style="font-size:8pt;color:rgb(0,0,100);">(1)</span><span style="font-size:8pt;color:black;">.</span></b></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">7 </span></sup><span style="font-size:8pt;color:black;">In order to maximize the sample size in subsequent estimation, heroin prices that are missing in any given MSA for any given year are imputed by the weighted mean of the prices for all other available MSA’s in that particular state. About 3% of the DAWN sample are affected by this imputation. Results are not sensitive to alternately omitting the missing values.</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section20">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333 317</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
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<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section21">
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>real price (in 1982–1984 dollars) of one pure gram of cocaine is $79.45. The mean real heroin price is $421.81.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>One of the advantages of this study is that the drug prices are computed and merged at the city level. Many prior studies relying on national self-reported survey data used state-average prices despite the fact that drug prices seem to vary widely from city to city. The variation in drug prices across cities and within cities can be related to cost and supply-side factors. For example in the DAWN sample, cocaine prices are lowest in port-of-entry cities like San Diego, Los Angeles, Miami, and New York, and highest in interior cities like Minneapolis, Saint Louis, and Detroit.&nbsp;<span style="color:rgb(0,0,100);">Kuziemko and Levitt (2004) ﬁnd that even within a given city, STRIDE cocaine prices from 1986 through 1996 are positively related to state-level indicators of the certainty of punishment, measured by the per capita number of drug arrests, and the severity of punishment, measured by the fraction of drug arrests resulting in imprisonment. Basov et al. (2001) argue that due to the illicit, secretive nature of the drug trade, both production and sales are more labor intensive compared to legal markets. Most of these jobs are also likely to be ﬁlled by low-skilled employees, youths, or others with fewer outside opportunities. Their study shows that cocaine and heroin prices from STRIDE are positively related to the state-speciﬁc relative unskilled wage in a time series of states from 1974 to 1999. These two studies further conﬁrm that DEA drug prices do indeed reﬂect costs of retailing including expected penalties and labor costs.</span></b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-3.5pt;">8</span></sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"> </span></b></p>
<p class="CM25" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>The underlying assumption is that drug prices vary across cities and over time as a result of changes in distribution and shipping costs, labor costs, resources expended towards enforcement and apprehension of dealers, and severity of penalties. In this case, the supply curve for cocaine and heroin is inﬁnitely elastic. If the supply curve is instead positively sloped, then estimates of the demand price elasticity are biased downwards in absolute magnitude and may be regarded as conservative lower-bound estimates. As the supply curve becomes more elastic, the bias decreases, ceteris paribus. Supply of drugs are likely to be relatively price elastic since the marginal cost of actual production is a small component of the observed street price; most of the money price reﬂects enforcement and penalties aimed at sellers.<sup><span style="position:relative;top:-3.5pt;">9 </span></sup></b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>Miron’s (2003) detailed analysis indicates that the price of cocaine and heroin are as much as four times and 19 times larger, respectively, compared to a legal market. Even if simultaneity bias is mitigated, there may still be policy endogeneity wherein drug policy, which in turn affects drug prices, is itself a function of drug use. First-differenced instrumental variables models are estimated, which account for both simultaneity and policy endogeneity.</b></span></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:rgb(0,0,100);">4. Empirical framework</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:rgb(0,0,100);"> </span></b></p>
<p class="CM27" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:rgb(0,0,100);"><b>The objective of this study is to assess the extent to which outcomes related to cocaine and heroin consumption respond to cocaine and heroin prices. Since illicit drugs are ultimately con sumer goods, this question can be framed within the context of consumer theory. Maximizing a utility function in every period subject to a basic budget constraint yields the following demand</b></span></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:rgb(0,0,100);position:relative;top:-3pt;">8 </span></sup><span style="font-size:8pt;color:rgb(0,0,100);">A report by the National Research Council (Manski et al., 2001</span><span style="font-size:8pt;color:black;">) and </span><span style="font-size:8pt;color:rgb(0,0,100);">Horowitz (2001) </span><span style="font-size:8pt;color:black;">note that because purchases in STRIDE are motivated by criminal investigations, they do not represent a random sample of drug prices in the U.S. Nonetheless, as long as the sampling limitations are stable over time, these data can still accurately capture changes in the cost of drugs. Also see</span><span style="font-size:8pt;color:rgb(0,0,100);">Caulkins (2001a) </span><span style="font-size:8pt;color:black;">for a discussion of the utility in using STRIDE.</span></b></p>
<p class="CM6" style="text-align:justify;text-indent:5.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">9 </span></sup><span style="font-size:8pt;color:black;">The observed drug price consists of the marginal cost of production plus expected penalties for suppliers. The supply-money price elasticity can be shown to equal the elasticity of supply with respect to the marginal production cost times the ratio of the full price to the marginal production cost.</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section22">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
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<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section23">
<p class="CM22" style="text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM22" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>function</b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-3.5pt;">10</span></sup><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">:</span></b></p>
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<p><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section24">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:23.9pt;text-align:justify;"><b><i><span style="font-family:'EGMKB K+ MTMI',sans-serif;">D</span></i><span style="font-size:7.5pt;">lt = </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">α</span></i><span style="font-size:7.5pt;">1</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><span style="font-size:7.5pt;">lt + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">α</span></i><span style="font-size:7.5pt;">2</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><span style="font-size:7.5pt;">2t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">δ</span></i><span style="font-size:7.5pt;">1</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><span style="font-size:7.5pt;">1t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">δ</span></i><span style="font-size:7.5pt;">2</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><span style="font-size:7.5pt;">2t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">1</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">I</span></i><span style="font-size:10pt;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">2</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">Y</span></i><span style="font-size:10pt;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ε</span></i><span style="font-size:10pt;">t (3)</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section25">
<p class="CM22" style="margin-left:23.9pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>Eq.&nbsp;<span style="color:rgb(0,0,100);">(3) </span><span style="color:black;">states that the demand for any illicit drug (</span></b></span><b><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">D</span></i><span style="font-size:7.5pt;color:black;">1</span><span style="font-size:10pt;color:black;">) depends on its own price (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><span style="font-size:7.5pt;color:black;">1</span><span style="font-size:10pt;color:black;">), the price of the other drug (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><span style="font-size:7.5pt;color:black;">2</span><span style="font-size:10pt;color:black;">), the addictive stocks of the own drug and the other drug (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">S</span></i><span style="font-size:7.5pt;color:black;">1 </span><span style="font-size:10pt;color:black;">and </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">S</span></i><span style="font-size:7.5pt;color:black;">2</span><span style="font-size:10pt;color:black;">), income (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">I</span></i><span style="font-size:10pt;color:black;">), and other characteristics (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">Y</span></i><span style="font-size:10pt;color:black;">) such as the individual’s age, gender, race, and education. The parameter of interest, </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">α</span></i><span style="font-size:7.5pt;color:black;">1</span><span style="font-size:10pt;color:black;">, is hypothesized to be negative under the law of the downward sloping demand function. The cross-price effect </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">α</span></i><span style="font-size:7.5pt;color:black;">2 </span><span style="font-size:10pt;color:black;">is positive if the two drugs are economic substitutes, negative if they are economic complements, and zero if independent. The parameter </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">δ</span></i><span style="font-size:7.5pt;color:black;">1 </span><span style="font-size:10pt;color:black;">is hypothesized to be greater than zero due to the positive reinforcement of past addictive consumption on current consumption. This intertemporal complementarity between past and current consumption is the hallmark of economic models of addiction. The cross-reinforcement effect </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">δ</span></i><span style="font-size:7.5pt;color:black;">2 </span><span style="font-size:10pt;color:black;">may be zero or positive. Since the accumulated addictive stocks of each drug are unobserved, they can be proxied by past consumption, which in turn can be proxied by the past prices of drugs.</span></b></p>
<p class="CM22" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:black;"><b>The set of outcomes employed from DAWN is the number of times cocaine and heroin are cited in drug-related ED episodes, divided by total MSA population. DAWN does not sample all eligible hospitals. Ideally, the probability of having a cocaine or heroin induced ED episode should be measured relative to the “potential” population, that is individuals living in an area within a sampled MSA that directs medical crises to a participating DAWN ED (</b></span><span style="font-size:10pt;color:rgb(0,0,100);"><b>Model, 1993</b></span><span style="font-size:10pt;color:black;"><b>). This probability can be written as</b></span></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section26">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM23" style="text-align:center;line-height:12pt;" align="center"><b>prob(mention<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>total pop) = prob(mention<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>potential pop) × prob(potential pop<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>total pop)</b></p>
<p class="CM22" style="margin-left:370.9pt;text-align:justify;line-height:12pt;"><b>(4)</b></p>
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<p><span style="font-size:12pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section27">
<p class="CM22" style="margin-left:370.9pt;text-align:justify;line-height:12pt;">
<p class="CM22" style="text-align:justify;line-height:12pt;"><span style="font-size:10pt;"><b>The probability of a drug mention relative to the appropriate potential population can be further expressed as</b></span></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section28">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM23" style="margin-left:23.9pt;text-align:justify;"><b>prob(mention<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>potential pop)</b></p>
<p class="Default" style="margin-left:33.9pt;text-align:justify;"><span style="color:windowtext;"><b>= prob(report</b></span><span style="font-family:'EGMJK J+ MTSY',sans-serif;color:windowtext;"><b>|</b></span><span style="color:windowtext;"><b>potential pop, ED, crisis, use)</b></span></p>
<p class="Default" style="margin-left:43.75pt;text-align:justify;line-height:18pt;"><span style="font-family:'EGMJK J+ MTSY',sans-serif;color:windowtext;"><b>×</b></span><span style="color:windowtext;"><b>prob(ED</b></span><span style="font-family:'EGMJK J+ MTSY',sans-serif;color:windowtext;"><b>|</b></span><span style="color:windowtext;"><b>potential pop, crisis,use) × prob(crisis</b></span><span style="font-family:'EGMJK J+ MTSY',sans-serif;color:windowtext;"><b>|</b></span><span style="color:windowtext;"><b>potential pop, use)</b></span></p>
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<p><span style="font-size:12pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section29">
<p class="Default" style="margin-left:43.75pt;text-align:justify;line-height:18pt;"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM23" style="text-align:justify;text-indent:43.75pt;line-height:18pt;"><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>×</b></span><span style="font-size:10pt;"><b>prob(use</b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>|</b></span><span style="font-size:10pt;"><b>potential pop) (5) Substituting&nbsp;<span style="color:rgb(0,0,100);">(5) </span><span style="color:black;">into </span><span style="color:rgb(0,0,100);">(4) </span><span style="color:black;">and taking the log of both sides results in</span></b></span></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section30">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM24" style="margin-left:33.9pt;text-indent:-10pt;line-height:17.9pt;"><b>log prob(mention<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>total pop) = log prob(report<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>potential pop,ED,crisis,use) + log prob(ED<span style="font-family:'EGMJK J+ MTSY',sans-serif;">|</span>potential pop,crisis,use)</b></p>
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<p><span style="font-size:12pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section31">
<p class="CM24" style="margin-left:33.9pt;text-indent:-10pt;line-height:17.9pt;">
<p class="CM32" style="text-align:justify;text-indent:2.5pt;line-height:10pt;"><b><sup><span style="font-size:6pt;position:relative;top:-3pt;">10 </span></sup><span style="font-size:8pt;">The individual’s current utility depends on current consumption of the addictive goods (</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D</span></i><span style="font-size:6pt;">1 </span><span style="font-size:8pt;">and </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D</span></i><span style="font-size:6pt;">2</span><span style="font-size:8pt;">), the non-addictive good (</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">X</span></i><span style="font-size:8pt;">), and also on the stock of the addictive goods (</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">S</span></i><span style="font-size:6pt;">1 </span><span style="font-size:8pt;">and </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">S</span></i><span style="font-size:6pt;">2</span><span style="font-size:8pt;">) accumulated through past consumption. In addition to positive and diminishing marginal utility in A and </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">X</span></i><span style="font-size:8pt;">, the utility function also satisﬁes other restrictions. First is the reinforcement effect, wherein the stocks of addictive consumption positively affect current marginal utility of the addictive goods: </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">U</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">D</span></i><i><sub><span style="font-size:5pt;font-family:'EGMKB K+ MTMI',sans-serif;position:relative;top:2pt;">i</span></sub></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><sub><span style="font-size:6pt;position:relative;top:2pt;">i </span></sub><span style="font-size:6pt;">= </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">∂</span></i><span style="font-size:6pt;">2</span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">U</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">t</span></i><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">/D</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:6pt;">t &gt; </span><span style="font-size:8pt;">0, i = 1, 2. Second is the tolerance effect, wherein the addictive stocks negatively affect current utility: </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">U</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><sub><span style="font-size:6pt;position:relative;top:2pt;">i </span></sub><span style="font-size:6pt;">= </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">∂U</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">t</span></i><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">/∂S</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:6pt;">t &lt; </span><span style="font-size:8pt;">0, i = 1, 2. This can also reﬂect harmful addiction since past consumption of drugs can lower current utility due to detrimental health effects. There may also be cross-reinforcement effects so that the addictive stock of one drug may affect the current consumption of the other by affecting its current marginal utility: </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">U</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">D</span></i><i><sub><span style="font-size:5pt;font-family:'EGMKB K+ MTMI',sans-serif;position:relative;top:2pt;">i</span></sub></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><sub><span style="font-size:6pt;position:relative;top:2pt;">i </span></sub><span style="font-size:6pt;">= </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">∂</span></i><span style="font-size:6pt;">2</span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">U</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">t</span></i><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">/∂D</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;">S</span></i><i><span style="font-size:6pt;font-family:'EGMKB K+ MTMI',sans-serif;">j</span></i><span style="font-size:6pt;">t ≥ </span><span style="font-size:8pt;">0, i j.</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section32">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="Default" style="margin-left:93.4pt;text-align:justify;"><span style="color:windowtext;"><b>=</b></span></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333 319</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="CM23" style="margin-left:43.75pt;text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>+</b></span><span style="font-size:10pt;"><b>log prob(crisis</b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>|</b></span><span style="font-size:10pt;"><b>potential pop,use) + log prob(use</b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>|</b></span><span style="font-size:10pt;"><b>potential pop)</b></span></p>
<p class="CM22" style="margin-left:43.75pt;text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>+</b></span><span style="font-size:10pt;"><b>log prob(potential pop</b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>|</b></span><span style="font-size:10pt;"><b>total pop) (6)</b></span></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section33">
<p class="CM22" style="margin-left:43.75pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>This identity stresses that many factors contribute to a DAWN drug mention. First, an individual must be part of the potential population and using drugs. He must then experience some crisis or medical emergency, which results in a visit to a participating ED. Finally, hospital personnel must identify this episode as drug-related. The probability of drug use and the probability of crisis (which are a monotonic function of the intensity or chronicity of use) depend on the demand factors derived earlier in Eq.&nbsp;<span style="color:rgb(0,0,100);">(3)</span><span style="color:black;">. The probability of being part of the potential population relative to the total population is proxied by the number of hospitals participating in DAWN as a fraction of total eligible hospitals. The conditional probabilities of an ED visit and a drug report are related to emergency room visitation practices and any non-reporting or misreporting by the ED staff. There is no a priori reason to believe that these probabilities have systematically varied over time within cities; thus, they may be modeled as part of the unobserved area and year effects. These substitutions yield the following estimable speciﬁcation, which can be interpreted as a reduced-form relationship of the demand and cost factors affecting drug-related emergency department visits</span></b></span></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section34">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="Default" style="margin-left:57.15pt;text-align:justify;"><b><i><u><span style="font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">A</span></u></i><u><span style="font-size:7.5pt;color:windowtext;">1</span></u><i><u><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">it</span></u></i><span style="color:windowtext;"> </span></b></p>
<p class="Default" style="margin-left:23.9pt;text-align:justify;"><span style="font-size:10pt;color:windowtext;"><b>log = </b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">α</span></i><span style="font-size:7.5pt;color:windowtext;">1</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">P</span></i><span style="font-size:7.5pt;color:windowtext;">1</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">i</span></i><span style="font-size:7.5pt;color:windowtext;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">α</span></i><span style="font-size:7.5pt;color:windowtext;">2</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">P</span></i><span style="font-size:7.5pt;color:windowtext;">2</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">i</span></i><span style="font-size:7.5pt;color:windowtext;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">λ</span></i><span style="font-size:7.5pt;color:windowtext;">1</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">P</span></i><span style="font-size:7.5pt;color:windowtext;">1</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:windowtext;">−</span><span style="font-size:7.5pt;color:windowtext;">1 + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">λ</span></i><span style="font-size:7.5pt;color:windowtext;">2</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">P</span></i><span style="font-size:7.5pt;color:windowtext;">2</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:windowtext;">−</span><span style="font-size:7.5pt;color:windowtext;">1 + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">β</span></i><span style="font-size:7.5pt;color:windowtext;">1</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">I</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">i</span></i><span style="font-size:7.5pt;color:windowtext;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">β</span></i><span style="font-size:7.5pt;color:windowtext;">2</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">Y</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;">it</span></i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:windowtext;"> </span></b></p>
<p class="CM22" style="margin-left:48.5pt;text-align:justify;"><span style="font-size:10pt;"><b>1 − </b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">A</span></i><span style="font-size:7.5pt;">1</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;">+</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">3</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">R</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ε</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;">, </span><span style="font-size:10pt;">where </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ε</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t = </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">µ</span></i><span style="font-size:10pt;">i + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">η</span></i><span style="font-size:10pt;">t + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">(7)</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section35">
<p class="CM22" style="margin-left:48.5pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>The subscripts denote the </b></span><b><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:10pt;">th MSA for year </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">t</span></i><span style="font-size:10pt;">. A is the probability of a drug episode, and Y represents the vector of observable determinants of use, besides price and income, and is proxied by the unemployment rate, various MSA-level socioeconomic characteristics, and drug-related arrest rates. All models also include the log of the hospital response rate, </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">R</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;">it</span></i><span style="font-size:10pt;">. The disturbance is modeled with two-way error components where </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">µ</span></i><span style="font-size:10pt;">i denotes the unobservable area ﬁxed effects, </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">η</span></i><span style="font-size:10pt;">t denotes the unobservable time ﬁxed effects, and </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">is the remainder stochastic error term. All regressions are estimated in logistic form, where the dependent variable is measured as the log of the odds ratio. Since the original outcomes are rates between zero and one, the logistic transformation ensures that the predicted rate or probability also lies in this range.</span><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">11 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">Estimated standard errors are adjusted for autocorrelation within each city. Under an addiction paradigm, current drug-related outcomes will be a function of contemporaneous and past drug prices. An alternative rationale for (7) </span><span style="font-size:7.5pt;color:black;">is that drug-related health emergencies are produced not just by current use but also by the cumulative effects of past use, which is a function of past prices.</span></b></p>
<p class="CM24" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;color:black;"><b>This ﬁxed effects procedure is inconsistent if city drug prices or the policies that determine them might depend on outcomes related to substance use, or as is more likely the lagged drug-related outcomes. This possibility is sometimes referred to as policy endogeneity. There are two critical issues. The ﬁrst is that there is an unmeasured ﬁxed effect that is correlated with right-hand-side variables. In the context of this research, the ﬁxed effect may be city or state sentiment (e.g., religiosity) towards drug use that also inﬂuences drug prices and enforcement. The second issue is that price may be predetermined and not strictly exogenous because past shocks to drug use or drug-related health emergencies may be correlated with current prices. Thus, current price</b></span></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">11 </span></sup><span style="font-size:8pt;color:black;">The elasticity of the probability of a drug-related ED visit with respect to price is calculated as </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">α</span></i><span style="font-size:6pt;color:black;">1 </span><span style="font-size:8pt;color:black;">(1 − </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;color:black;">A</span></i><span style="font-size:8pt;color:black;">)</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><span style="font-size:8pt;color:black;">. The marginal effect of price on this probability is </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">α</span></i><span style="font-size:6pt;color:black;">1 </span><span style="font-size:8pt;color:black;">(1 − </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;color:black;">A</span></i><span style="font-size:8pt;color:black;">)</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;color:black;">A</span></i><span style="font-size:8pt;color:black;">.</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section36">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
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<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section37">
<p class="CM22" style="text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM22" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>is predetermined in that it is correlated with all past disturbances</b></span></p>
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<p><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section38">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM33" style="margin-left:23.9pt;text-align:justify;"><b><i><span style="font-family:'EGMKB K+ MTMI',sans-serif;">E</span></i>(<i><span style="font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">is</span></i><span style="font-size:10pt;">) for </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">s&lt;</span></i><span style="font-size:10pt;">t and for s = t (8)</span></b></p>
<p class="CM22" style="margin-left:64.4pt;text-align:justify;"><span style="font-size:10pt;"><b>= 0 </b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">E</span></i><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">is</span></i><span style="font-size:10pt;">) = 0</span></b></p>
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<div class="Section39">
<p class="CM22" style="margin-left:64.4pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM26" style="text-align:justify;line-height:12pt;"><span style="font-size:10pt;"><b>Consider a simple version of&nbsp;<span style="color:rgb(0,0,100);">(7)</span><span style="color:black;">. For convenience, LO</span></b></span><b><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">i</span></i><span style="font-size:7.5pt;color:black;">t </span><span style="font-size:10pt;color:black;">refers to log (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">A</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">it</span></i><span style="font-size:10pt;color:black;">/1 − </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">A</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">it</span></i><span style="font-size:10pt;color:black;">) and the year effects are ignored. The area ﬁxed effects can be removed by ﬁrst differencing</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section40">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:23.9pt;text-align:justify;"><b>LO<i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><span style="font-size:10pt;">LO</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1 = </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">α</span></i><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">I</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">I</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">2</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">Y</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">Y</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">)</span></b></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-size:10pt;"><b>+ </b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">3</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">R</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">R</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + (</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) (9)</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section41">
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>If price is a predetermined variable then the orthogonality assumption is violated since </b></span><b><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">is correlated with </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">. The ﬁxed effects or ﬁrst-differenced speciﬁcation is no longer consistent.</span></b></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;"><b>In order to check for potential policy endogeneity, two informal tests are performed. First, following&nbsp;<span style="color:rgb(0,0,100);">Model (1993)</span><span style="color:black;">, speciﬁcations with a series of lagged and leading prices are estimated. If changes in drug outcomes are caused by changes in enforcement or prices as opposed to changes in prices being caused by these outcomes, then larger outcomes should not occur until after any decreases in price and vice versa. In speciﬁcations with lagged and leading price series, only the coefﬁcients on contemporaneous and lagged prices should be signiﬁcant. The lead prices should be insigniﬁcant. If the leading prices are signiﬁcant, however, this could be evidence of policy endogeneity.</span></b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">12</span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);"> </span></b></p>
<p class="CM26" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;color:rgb(0,0,100);"><b>A second test estimates speciﬁcations with various lagged enforcement variables to proxy for past shocks to demand that may also be affecting current prices. Consider the baseline equation again, where the disturbance term </b></span><b><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;color:rgb(0,0,100);">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">i</span></i><span style="font-size:7.5pt;color:rgb(0,0,100);">t </span><span style="font-size:10pt;color:rgb(0,0,100);">is divided into two components </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:rgb(0,0,100);">ω</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">i</span></i><span style="font-size:7.5pt;color:rgb(0,0,100);">t </span><span style="font-size:10pt;color:rgb(0,0,100);">and </span><i><span style="font-size:10pt;font-family:'Cambria Math',serif;color:rgb(0,0,100);">ϕ</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">i</span></i><span style="font-size:7.5pt;color:rgb(0,0,100);">t</span></b></p>
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<p><span style="font-size:7.5pt;font-family:'Times New Roman',serif;color:rgb(0,0,100);"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section42">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:23.9pt;text-align:justify;"><span style="font-size:10pt;"><b>LO</b></span><b><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><span style="font-size:10pt;">LO</span><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1 = </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">α</span></i><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">I</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">I</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">2</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">Y</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">Y</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">)</span></b></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-size:10pt;"><b>+ </b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">β</span></i><span style="font-size:7.5pt;">3</span><span style="font-size:10pt;">(</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">R</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">R</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + (</span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ω</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ω</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) + (</span><i><span style="font-size:10pt;font-family:'Cambria Math',serif;">ϕ</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">i</span></i><span style="font-size:7.5pt;">t − </span><i><span style="font-size:10pt;font-family:'Cambria Math',serif;">ϕ</span></i><i><span style="font-size:7.5pt;font-family:'EGMKB K+ MTMI',sans-serif;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7.5pt;">1</span><span style="font-size:10pt;">) (9a)</span></b></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section43">
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-size:10pt;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>Here, </b></span><b><i><span style="font-size:10pt;font-family:'Cambria Math',serif;">ϕ</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">is a pure stochastic disturbance term that is uncorrelated with all past, current, and future values of the explanatory variables. However, </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ω</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:7.5pt;">t </span><span style="font-size:10pt;">represents unobserved shocks to past use that may also affect current prices, making price predetermined and statistically endogenous. This endogeneity is similar to omitted variables bias in an intertemporal context. Conditional on </span><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;">ω</span></i><span style="font-size:10pt;">, price is strictly exogenous with respect to the remainder disturbance term. Therefore, if variables measuring such shocks can be included in the models, then the coefﬁcients on price can be analyzed to gauge the extent of such endogeneity. Past enforcement efforts may proxy for these shocks to some extent. For instance, higher arrest rates related to drug violations or sales may affect current drug consumption and also inﬂuence future drug prices. If the price effects are robust in speciﬁcations that control for these lagged enforcement variables, then it is likely that price is not predetermined.</span></b></p>
<p class="CM4" style="margin-bottom:31.75pt;text-align:justify;text-indent:12pt;"><span style="font-size:10pt;"><b>The possibility that price is not strictly exogenous is also treated explicitly by applying the Arellano–Bond estimator.&nbsp;<span style="color:rgb(0,0,100);">Arellano and Bond (1991) </span><span style="color:black;">show that the orthogonality conditions in a dynamic panel data model can be exploited to obtain valid instruments for (</span></b></span><b><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">i</span></i><span style="font-size:7.5pt;color:black;">t − </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;">−</span><span style="font-size:7.5pt;color:black;">1</span><span style="font-size:10pt;color:black;">). If price is predetermined, all lagged levels (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">it</span></i><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;">−</span><span style="font-size:7.5pt;color:black;">1 </span><span style="font-size:10pt;color:black;">and older) can be used to instrument for the difference</span></b></p>
<p class="CM32" style="text-align:justify;text-indent:2.5pt;line-height:10pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">12 </span></sup><span style="font-size:8pt;color:black;">Signiﬁcant lead prices may also be construed as evidence of rational addiction (</span><span style="font-size:8pt;color:rgb(0,0,100);">Becker and Murphy, 1988</span><span style="font-size:8pt;color:black;">). However in the present context, it is unlikely that users are able to forecast drug prices far in advance, as much as 1 year. See </span><span style="font-size:8pt;color:rgb(0,0,100);">Gruber and K¨</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:rgb(0,0,100);"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section44">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="Default" style="margin-left:19.25pt;text-align:justify;"><span style="color:windowtext;"><b>oszegi (2001)</b></span><b>.</b></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;color:black;">D. Dave / Journal of Health Economics 25 (2006) 311–333 321</span></i><span style="font-family:'EGMJK K+ Times',serif;color:black;"> </span></b></p>
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<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section45">
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-family:'EGMJK K+ Times',serif;color:black;"><b> </b></span></p>
<p class="CM33" style="text-align:justify;line-height:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>as long as the </b></span><b><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">i</span></i><span style="font-size:7.5pt;color:black;">t </span><span style="font-size:10pt;color:black;">are not serially correlated.</span><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">13 </span></sup><span style="font-size:10pt;color:black;">If the drug price is not just predetermined but also purely endogenous (for instance due to simultaneity between supply and demand) such that E (</span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">P</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">it</span></i><i><span style="font-size:10pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">ν</span></i><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">is</span></i><span style="font-size:10pt;color:black;">) 0 for s ≤ </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">t</span></i><span style="font-size:10pt;color:black;">, then the orthogonality conditions allow levels of drug prices lagged two or</span></b></p>
<p class="Default" style="text-indent:29.5pt;line-height:12pt;"><span style="font-size:10pt;"><b>= more periods to serve as instruments. Levels of the other exogenous variables in the model can also enter the instrumental matrix.</b></span></p>
<p class="CM25" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:black;"><b>The elasticity of drug mentions with respect to drug use is unambiguously positive, since the negative health consequences of addictive consumption are well documented.</b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">14 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">Also, by deﬁnition, the majority of the ED episodes and mentions in the DAWN sample are causally related to dependent drug use. Thus, the sign and signiﬁcance of the estimated elasticity of a drug mention with respect to price informs on the unobserved price elasticity of problematic drug use. The price elasticity of drug episodes and mentions is also relevant because it measures the direct “reduced-form” effect of drug prices, an instrument of enforcement and public policy, on health.</span></b></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:7.5pt;font-family:'EGMJL L+ Times',serif;color:rgb(0,0,100);">5. Results</span></b><span style="font-size:7.5pt;font-family:'EGMJL L+ Times',serif;color:rgb(0,0,100);"> </span></b></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:7.5pt;color:rgb(0,0,100);"><b>Before turning to the results, Fig. 1 </b></span><span style="font-size:7.5pt;color:black;"><b>visually depicts the strong negative relationship between drug-related ED episodes and drug prices. The series reveal that total ED drug episodes increased by about 55% from 1990 to 2002 as the prices of cocaine and heroin declined.</b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">15 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">The sharpest increase occurred in heroin mentions, by over 160%, which coincides with the steepest drop in heroin price of around 72%. Cocaine price declined by about 42% over this period, coinciding with a 72% increase in cocaine-related ED mentions. This is only suggestive since these ﬁgures do not control for time trends or other confounders. The multivariate models address this possibility.</span></b></p>
<p class="CM27" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;color:rgb(0,0,100);"><b>Table 2 </b></span><span style="font-size:7.5pt;color:black;"><b>presents estimation of Eq. </b></span><span style="font-size:7.5pt;color:rgb(0,0,100);"><b>(7) </b></span><span style="font-size:7.5pt;color:black;"><b>excluding the lagged and cross-prices. All speciﬁcations include the drug price, MSA-level socioeconomic covariates, the DAWN response rate, the drug possession arrest rate, year effects, and then progressively add MSA effects and MSA-speciﬁc linear trends. Cocaine price is negative and statistically signiﬁcant in all speciﬁcations, and the elasticity of the probability of a cocaine mention with respect to own price ranges from </b></span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:7.5pt;color:black;"><b>0.20 to </b></span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:7.5pt;color:black;"><b>0.41. Speciﬁcation 2, which includes both year and MSA effects, yields a price elasticity of </b></span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:7.5pt;color:black;"><b>0.32. The next speciﬁcation adds indicators of an MSA-speciﬁc linear trend, where only deviations around a linear trend, within each city, are used for identiﬁcation. The price effect remains marginally signiﬁcant, and the elasticity decreases in value to </b></span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:7.5pt;color:black;"><b>0.20. The addition of MSA-speciﬁc linear trends causes the MSA-level covariates to lose joint signiﬁcance. These covariates may already be controlling for trends within MSA’s to a large extent. The largest gain in adjusted </b></span><b><i><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:black;">R</span></i><sup><span style="font-size:7.5pt;color:black;position:relative;top:-3.5pt;">2 </span></sup><span style="font-size:10pt;color:black;">results from the addition of MSA effects; including MSA-linear trends raises the adjusted </span><i><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">R</span></i><sup><span style="font-size:7.5pt;color:black;position:relative;top:-3.5pt;">2 </span></sup><span style="font-size:10pt;color:black;">by a relatively small amount. In subsequent analyses, ﬁxed effects speciﬁcations without city-speciﬁc trends are emphasized. The estimated price elasticity of heroin mentions is</span></b></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">13 </span></sup><span style="font-size:8pt;color:black;">If the </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">ν</span></i><span style="font-size:6pt;color:black;">it </span><span style="font-size:8pt;color:black;">are not serially correlated, there is still ﬁrst-order autocorrelation between the ﬁrst-differenced errors. Thus, a test of no autocorrelation in </span><i><span style="font-size:8pt;font-family:'EGMKB K+ MTMI',sans-serif;color:black;">ν</span></i><span style="font-size:6pt;color:black;">it </span><span style="font-size:8pt;color:black;">translates to testing whether there is second-order or higher degree autocorrelation in the differenced errors. These tests are presented in the results (</span><span style="font-size:8pt;color:rgb(0,0,100);">Baltagi, 2002</span><span style="font-size:8pt;color:black;">).</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section46">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM16" style="margin-left:2.5pt;text-align:justify;"><b><sup><span style="font-size:6pt;position:relative;top:-3pt;">14 </span></sup><span style="font-size:8pt;">See </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Th</span></i><span style="font-size:8pt;">e </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Economi</span></i><span style="font-size:8pt;">c </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Cost</span></i><span style="font-size:8pt;">s </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">o</span></i><span style="font-size:8pt;">f </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Alcoho</span></i><span style="font-size:8pt;">l </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">an</span></i><span style="font-size:8pt;">d </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Dru</span></i><span style="font-size:8pt;">g </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Abus</span></i><span style="font-size:8pt;">e </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">i</span></i><span style="font-size:8pt;">n </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">th</span></i><span style="font-size:8pt;">e </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Unite</span></i><span style="font-size:8pt;">d </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">State</span></i><span style="font-size:8pt;">s </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">199</span></i><span style="font-size:8pt;">2 (<span style="color:rgb(0,0,100);">Harwood et al., 1992</span><span style="color:black;">).</span></span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section47">
<p class="CM16" style="margin-left:2.5pt;text-align:justify;"><span style="font-size:8pt;color:black;"><b> </b></span></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">15 </span></sup><span style="font-size:8pt;color:black;">The decline in the real cocaine price has been attributed to the development of a production sector and the learning-by-doing that followed the reintroduction of cocaine into the U.S. market in the 1970s after prolonged absence. There was also vertical integration in the chain of distribution, which reduced the costs of retailing and wholesaling. Costs also declined from a shift to low-cost labor as unemployed residents of urban ghettos replaced the professionals who dealt drugs during the 1970s and 1980s. See </span><span style="font-size:8pt;color:rgb(0,0,100);">Grossman et al. (1998, 2002)</span><span style="font-size:8pt;color:black;">. Heroin prices declined due to a shift in the heroin marketplace in the U.S. as drug cartels in Mexico and Colombia began to eclipse the southeast Asian suppliers. Most of the heroin now entering the U.S. originates from these two countries.</span></b></p>
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<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section48">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM29" style="margin-left:96.65pt;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="Default" style="margin-bottom:8pt;text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;color:windowtext;"><b><img src="/DOCUME%7E1/Matt/LOCALS%7E1/Temp/msohtmlclip1/01/clip_image004.jpg" alt="" height="413" width="356"></b></span></p>
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<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section49">
<p class="Default" style="margin-bottom:8pt;text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;color:windowtext;"><b> </b></span></p>
<p class="CM24" style="text-align:justify;line-height:10pt;"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b>Fig. 1. ED indicators and drug prices.&nbsp;<i>Note</i></b></span><span style="font-size:8pt;"><b>: Underlying values are based on population-weighted means. All values are normalized to 1990 levels.</b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;"><b>estimated at </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;"><b>−</b></span><span style="font-size:10pt;"><b>0.12 in the ﬁxed effects model. The sign of the sample response rate in DAWN is positive, as expected from Eq.&nbsp;<span style="color:rgb(0,0,100);">(6)</span><span style="color:black;">.</span></b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;color:black;"><b>The estimates in </b></span><span style="font-size:10pt;color:rgb(0,0,100);"><b>Table 2 </b></span><span style="font-size:10pt;color:black;"><b>are based on all hospital ED admissions where cocaine or heroin is mentioned. DAWN provides the reasons for the ED admission from 1995 onwards, including drug overdose, chronic effects, withdrawal, seeking detoxiﬁcation, accidental injury, unexpected reac tion, or other. Models were also estimated for alternative measures of dependent use that included only those admissions resulting form drug overdose, chronic effects, withdrawal, or detoxiﬁcation, which make up the vast majority of admissions. The elasticities for cocaine and heroin mentions were somewhat smaller in magnitude, by about 30–50%, but still remain statistically signiﬁcant at conventional levels. The smaller elasticities do not qualitatively affect the conclusions and are expected if these alternative measures are capturing the heaviest of the heavy users. Subsequent analyses are based on all ED admissions in order to maximize the sample period and precision. In addition, there may be greater errors in classiﬁcation over time due to differential administrative and reporting policies. Focusing on all drug-related ED admissions also underscores the fact that these individuals’ drug use has resulted in a hospital ED admission, which by deﬁnition makes the drug use more serious regardless of cause.</b></span></p>
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<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section50">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM23" style="line-height:10pt;"><span style="font-size:8pt;"><b>Table 2 Cocaine and heroin mentions: baseline models</b></span></p>
<p class="CM25" style="text-align:center;" align="center"><span style="font-size:8pt;"><b>Dependent variable log odds cocaine mentions log odds heroin mentions</b></span></p>
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<p><b> </b></p>
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<p class="Default"><span style="font-size:8pt;">Speciﬁcation</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;">1</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="font-size:8pt;">2</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;">3</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">1</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;">2</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="font-size:8pt;">3</span></p>
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<p class="Default"><span style="font-size:8pt;">Own price</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:13.9pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00513</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0026),</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:13.9pt;margin:8px;padding:0 5.4pt;" width="110">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00398</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0017),</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:13.9pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00247</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(0.0016),</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:13.9pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00074</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0003),</span></p>
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<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00027</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0002),</span></p>
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<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:13.9pt;margin:8px;padding:0 5.4pt;" width="94">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00011 (0.0001)</span></p>
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<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
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<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.407</span></p>
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<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.320</span></p>
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<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.198</span></p>
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<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.313</span></p>
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<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.115</span></p>
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<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
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<p class="Default"><span style="font-size:8pt;">Personal Income</span></p>
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<p class="Default"><span style="font-size:8pt;">0.06697 (0.0411)</span></p>
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<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
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<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
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<p class="Default"><span style="font-size:8pt;">0.16451</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0745)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Unemployment</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">3.56396 (2.5276)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">12.17676</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span><span style="font-size:8pt;">(4.0358)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Male</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">2.53753 (3.0867)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">10.74876</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(4.6255)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Black</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;">4.00984</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span><span style="font-size:8pt;">(1.0921)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">2.25873</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(1.2975)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Other</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">2.37712 (1.8089)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">6.15829</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(2.3488)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Hispanic</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">1.93802 (1.1598)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" width="110">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">2.52806</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(1.2900)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="94">
<p class="Default"><span style="font-size:8pt;">Yes</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Age 16–24</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">8.41799</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span><span style="font-size:8pt;">(2.3412)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">11.95997</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span><span style="font-size:8pt;">(3.4645)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Age 25–54</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">3.67671</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(2.0033)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">9.96767</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(3.6032)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="100">
<p class="Default"><span style="font-size:8pt;">High school graduate</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">1.55271 (2.2835)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">0.84417 (3.3771)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:9.15pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">College graduate</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:9.15pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">2.42837 (2.7653)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:9.15pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">3.40195 (3.7541)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">log response rate</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">0.46621 (0.5438)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">1.15312</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(0.6277)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="100">
<p class="Default"><span style="font-size:8pt;">Drug possession arrest</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">8.41054 (60.3450)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">28.2408 (32.2418)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">8.6202 (22.5635)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:8pt;">85.26097 (78.5505)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:8pt;">1.2135 (27.8102)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">40.7445 (24.4650)</span></p>
</td>
</tr>
<tr style="height:7.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:7.9pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">rate</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:7.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:7.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="110">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:7.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:7.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:7.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:7.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="94">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">Year effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" width="110">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="94">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">MSA effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" width="110">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="94">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><span style="font-size:8pt;">MSA-linear trend</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10pt;margin:8px;padding:0 5.4pt;" width="110">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="94">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="100">
<p class="Default"><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">R</span></i><span style="font-size:6pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">0.587</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="110">
<p class="Default"><span style="font-size:8pt;">0.911</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">0.954</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:8pt;">0.639</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:8pt;">0.945</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="94">
<p class="Default"><span style="font-size:8pt;">0.971</span></p>
</td>
</tr>
<tr style="height:7.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="100">
<p class="Default"><span style="font-size:8pt;">Observations</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.25pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="106">
<p class="Default"><span style="font-size:8pt;">257</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:82.15pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="110">
<p class="Default"><span style="font-size:8pt;">257</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="106">
<p class="Default"><span style="font-size:8pt;">257</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="113">
<p class="Default"><span style="font-size:8pt;">250</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="106">
<p class="Default"><span style="font-size:8pt;">250</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:70.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="94">
<p class="Default"><span style="font-size:8pt;">250</span></p>
</td>
</tr>
</tbody>
</table>
<p><b><span style="font-weight:normal;"><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></span></b></p>
<div class="Section50">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM10" style="text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">Notes</span></i>: Dependent variable is log (<i><span style="font-family:'EGMJK K+ Times',serif;">A</span></i>/1 −&nbsp;<i><span style="font-family:'EGMJK K+ Times',serif;">A</span></i>) where A is the total number of cocaine or heroin mentions in each MSA divided by population. Standard errors are adjusted for MSA-speciﬁc serial correlation and are reported in parentheses. Elasticities are reported where the own-price coefﬁcient is signiﬁcant at 10% or less in a one-tailed test.</b></p>
<p class="CM28" style="margin-left:5.5pt;text-align:justify;"><span style="font-size:6pt;"><b>*</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 10%.</b></span></p>
<p class="CM28" style="margin-left:2.5pt;text-align:justify;"><span style="font-size:6pt;"><b>**</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 5%.</b></span></p>
<p class="CM28" style="text-align:justify;"><span style="font-size:6pt;"><b>***</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 1%.</b></span></p>
<p class="CM20" style="margin-right:97.15pt;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section51">
<p class="CM22" style="text-align:center;" align="center"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>Similar to self-reports, but for different reasons, there may also be underreporting in the DAWN data. Several states have adopted statutes that allow health insurers to legally deny coverage for an injury caused by alcohol or illicit drug use. Hospital administrators in such states may have an incentive to not report the ED admission as drug-related for reimbursement purposes.&nbsp;<span style="color:rgb(0,0,100);">Rivara et al. (2000)</span><span style="color:black;">conducted a survey of insurance commissioners in the 50 states plus D.C. to determine the prevalence of such statutes. Of the 18 states represented in DAWN, 12 states plus D.C. had such exclusions, two states allowed such exclusions with certain additional restrictions, and three states did not have any such statutes. Restricting the sample to the 13 states with strong statutes or the 15 states with any statute does not substantially affect the magnitudes or signiﬁcance of the elasticity estimates. Pooled models with an interaction between the drug price and a dichotomous indicator for a strong statute or any statute were also estimated. The interaction term was insigniﬁcant in all such models. This suggests that while there may be underreporting in DAWN, the underreporting does not appear to systematically vary over time across states in a way that is correlated with drug prices. This is not the case in survey-based data, where the underreporting is positively correlated with intensity of use and negatively correlated with price leading to biased estimates of the elasticity (</span><span style="color:rgb(0,0,100);">Dave, 2004</span><span style="color:black;">).</span></b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>Table 3 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>expands the baseline model by including the contemporaneous and 1-and 2-year lagged prices. The current prices are negative and signiﬁcant for both cocaine and heroin in the ﬁxed effects speciﬁcations. Adding these lagged prices does not substantially reduce the magnitude of the current price elasticity for either drug. The cocaine elasticity is very similar to those from the baseline models, and ranges from </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.21 to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.29. The 1-year lagged cocaine price elasticity is </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.28, not much weaker than the effect of contemporaneous price. The coefﬁcients of the contemporaneous and lagged prices can be used to calculate the long-run price elasticity of the probability of a cocaine mention, which measures the full current and future effects of a change in current price. It is about twice the magnitude of the short-run elasticity, and is estimated at </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.54. The contemporaneous heroin price elasticity ranges from </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.11 to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.15. The range is tighter than before since the upper bound estimates obtained from the year-effects models are more in line with the other speciﬁcations. Thus, adding lagged prices makes some difference when MSA indicators are not present to capture some of their effect. The 1-year lagged price elasticity is about </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.09, and the 2-year lagged price elasticity is </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.12. The effects of past heroin prices on the current likelihood of a heroin related ED visit are also relatively substantial and of a similar magnitude to the effect of current price. The long-run elasticity is </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.29. Negative and signiﬁcant lagged price effects are consistent with the addictive properties of cocaine and heroin and the ensuing positive intertemporal reinforcement effect. Since the dependent variable is a proxy for health, it is also consistent with the addictive substance having cumulative detrimental effects on health.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;color:black;"><b>Speciﬁcations 4 and 5 in </b></span><span style="font-size:10pt;color:rgb(0,0,100);"><b>Table 3 </b></span><span style="font-size:10pt;color:black;"><b>provide a check for policy endogeneity. These models are similar to those discussed above except that they add 1-year leading prices in addition to the current and lagged prices. Signiﬁcantly negative lead price-effects may indirectly inform on the presence of policy endogeneity. All speciﬁcations include the 1-year lagged and leading own prices.</b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">16 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">The evidence does not point to the presence of policy endogeneity. The contemporaneous and long-run price elasticities remain relatively robust to the inclusion of the leads, and current cocaine or heroin related ED episodes do not seem to be affected by future prices.</span></b></p>
<p class="CM24" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;color:rgb(0,0,100);"><b>Table 4 </b></span><span style="font-size:7.5pt;color:black;"><b>presents speciﬁcations that include lagged enforcement variables in order to control for any unobserved shocks to past drug-related outcomes and current prices. One set of lagged</b></span></p>
<p class="CM16" style="margin-left:2.5pt;text-align:justify;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">16 </span></sup><span style="font-size:8pt;color:black;">Other leading and lagging structures yielded similar results.</span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section52">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22"><b>Table 3 Cocaine and heroin mentions: lagged and leading prices</b></p>
</div>
<p><b> </b></p>
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<tbody>
<tr style="height:10.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:10.15pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="font-size:7pt;">Speciﬁcation</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:10.15pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;">1</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:10.15pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:10.15pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="font-size:7pt;">3</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:10.15pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;">4</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:10.15pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;">5</span></p>
</td>
</tr>
<tr style="height:10.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:10.15pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">log odds cocaine mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:10.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:10.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:10.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:10.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:10.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9.5pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">Own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00236</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0017),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00334</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0013),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00300</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0016),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00346</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0013),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00333</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0014),</span></p>
</td>
</tr>
<tr style="height:7.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.212</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:7.65pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.268</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.242</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.278</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.268</span></p>
</td>
</tr>
<tr style="height:10.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">1 Year lagged own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00368</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0022),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00337</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0015),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00281</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0017),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00317</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0016),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00303</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0015),</span></p>
</td>
</tr>
<tr style="height:8.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.15pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.301</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.15pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.276</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.15pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.230</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.15pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.260</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.15pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.248</span></p>
</td>
</tr>
<tr style="height:9.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9.75pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">2 Year lagged own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9.75pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00061 (0.0018)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9.75pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00069 (0.0011)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9.75pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00099 (0.0009)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9.75pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9.75pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00074 (0.0011)</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="font-size:7pt;">1 Year leading own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00138 (0.0011)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00143 (0.0371)</span></p>
</td>
</tr>
<tr style="height:8.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">Long run elasticity</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.507</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.4pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.539</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.467</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.533</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.512</span></p>
</td>
</tr>
<tr style="height:8.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.15pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">MSA covariates</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.15pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">Year effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">MSA effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">MSA-linear trend</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">R</span></i><span style="font-size:5pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">0.579</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9.65pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">0.914</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">0.956</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">0.952</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">0.914</span></p>
</td>
</tr>
<tr style="height:11.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:11.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="font-size:7pt;">Observations</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:11.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;">255</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:11.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;">255</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:11.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="font-size:7pt;">255</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:11.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;">243</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:11.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;">254</span></p>
</td>
</tr>
<tr style="height:11.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:11.65pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">log odds heroin mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">Own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00035</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0002),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00025</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0002),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00011 (0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00031</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00024</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
</tr>
<tr style="height:7.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.152</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:7.65pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.107</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.133</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.103</span></p>
</td>
</tr>
<tr style="height:10.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:10.25pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">1 Year lagged Own Price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00048</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00020</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:10.25pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00006 (0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00015</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00019</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
</tr>
<tr style="height:7.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.222</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:7.65pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.093</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.70</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.088</span></p>
</td>
</tr>
<tr style="height:10.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">2 Year lagged own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00061</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00023</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="119">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00010</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">−</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00023</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
</tr>
<tr style="height:8.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="126">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.319</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.25pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.121</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.048</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.120</span></p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">1 Year leading own price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9.65pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00016 (0.0002)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00021 (0.0002)</span></p>
</td>
</tr>
<tr style="height:8.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">Long run elasticity</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.619</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.4pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.293</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.048</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.198</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.283</span></p>
</td>
</tr>
<tr style="height:8.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">MSA covariates</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="116">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="131">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">Year effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:8.9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">MSA effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><span style="font-size:7pt;">MSA-linear trend</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="126">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">R</span></i><span style="font-size:5pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="116">
<p class="Default"><span style="font-size:7pt;">0.693</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:9.65pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:7pt;">0.952</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="119">
<p class="Default"><span style="font-size:7pt;">0.975</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="131">
<p class="Default"><span style="font-size:7pt;">0.952</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="112">
<p class="Default"><span style="font-size:7pt;">0.956</span></p>
</td>
</tr>
<tr style="height:6.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:94.25pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="126">
<p class="Default"><span style="font-size:7pt;">Observations</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:87.15pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="116">
<p class="Default"><span style="font-size:7pt;">243</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:1.25in;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="120">
<p class="Default"><span style="font-size:7pt;">243</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.9pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="119">
<p class="Default"><span style="font-size:7pt;">243</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.4pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="131">
<p class="Default"><span style="font-size:7pt;">242</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:83.75pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="112">
<p class="Default"><span style="font-size:7pt;">239</span></p>
</td>
</tr>
</tbody>
</table>
<p><b><span style="font-weight:normal;"><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></span></b></p>
<div class="Section52">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM10" style="text-align:justify;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Notes</span></i><span style="font-size:8pt;">: Dependent variable is log (</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">A</span></i><span style="font-size:8pt;">/1 − </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">A</span></i><span style="font-size:8pt;">) where A is the total number of cocaine or heroin mentions in each MSA divided by population. Own price refers to cocaine price in the logistic cocaine mention models, and heroin price in the logistic heroin mention models. Standard errors are adjusted for MSA-speciﬁc serial correlation and are reported in parentheses. MSA socioeconomic covariates include: personal income, unemployment, male, black, other, Hispanic, age 16–24, age 25–54, high school graduate, college graduate, log response rate, and arrest rate for drug possession. Elasticities are reported where the own-price coefﬁcient is signiﬁcant at 10% or less in a one-tailed test.</span></b></p>
<p class="CM28" style="margin-left:5.5pt;text-align:justify;"><span style="font-size:6pt;"><b>*</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 10%.</b></span></p>
<p class="CM28" style="margin-left:2.5pt;text-align:justify;"><span style="font-size:6pt;"><b>**</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 5%.</b></span></p>
<p class="CM28" style="text-align:justify;"><span style="font-size:6pt;"><b>***</b></span></p>
<p class="CM23" style="margin-left:12pt;text-align:justify;line-height:10pt;"><span style="font-size:8pt;"><b>Signiﬁcant at 1%.</b></span></p>
<p class="CM20" style="margin-right:97.15pt;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="CM25" style="line-height:10pt;"><span style="font-size:8pt;"><b>Table 4 Cocaine and heroin mentions: lagged enforcement measures</b></span></p>
</div>
<p><b> </b></p>
<table class="MsoNormalTable" style="cursor:default;width:550.15pt;border-collapse:collapse;" border="1" cellpadding="0" cellspacing="0" width="734">
<tbody>
<tr style="height:12.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:12.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="132">
<p class="Default"><span style="font-size:8pt;">Speciﬁcation</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:12.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:8pt;">1</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:12.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:12.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="font-size:8pt;">3</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:12.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">4</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:12.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:8pt;">5</span></p>
</td>
</tr>
<tr style="height:11.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:11.65pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">log odds cocaine mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:11.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">Cocaine price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00398</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0017),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00333</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0015),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00330</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0014),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00333</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0014),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00312</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0014),</span></p>
</td>
</tr>
<tr style="height:8.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="132">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.316</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.265</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.262</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.265</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default">ε&nbsp;<span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.248</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">MSA covariates</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">Yes</span></p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">Lagged drug enforcement</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Group 1</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">Group 2</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Group3</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">Group 4</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:9.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:9.15pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">Year effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">MSA effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">R</span></i><span style="font-size:6pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">0.911</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">0.920</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">0.921</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">0.920</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">0.923</span></p>
</td>
</tr>
<tr style="height:12.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="132">
<p class="Default"><span style="font-size:8pt;">Observations</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:8pt;">257</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">256</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="font-size:8pt;">256</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">256</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:8pt;">255</span></p>
</td>
</tr>
<tr style="height:12.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:12.5pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">log odds heroin mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:12.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">Heroin price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00027</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span><span style="font-size:8pt;">(0.0002),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00020</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00019</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00020</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.00019</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span><span style="font-size:8pt;">(0.0001),</span></p>
</td>
</tr>
<tr style="height:8.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="132">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-family:'Arial Unicode MS',sans-serif;">�</span> <span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.114</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-family:'Arial Unicode MS',sans-serif;">�</span> <span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.084</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-family:'Arial Unicode MS',sans-serif;">�</span> <span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.080</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-family:'Arial Unicode MS',sans-serif;">�</span> <span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.084</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-family:'Arial Unicode MS',sans-serif;">�</span> <span style="font-size:8pt;">= </span><span style="font-size:8pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:8pt;">0.080</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">MSA covariates</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">Lagged drug enforcement</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">No</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Group 1</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">Group 2</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Group3</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">Group 4</span><span style="font-size:6pt;color:rgb(0,0,100);">**</span></p>
</td>
</tr>
<tr style="height:9.15pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:9.15pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">Year effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="120">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="124">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:9.15pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><span style="font-size:8pt;">MSA effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">Yes</span><span style="font-size:6pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:10.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="132">
<p class="Default"><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">R</span></i><span style="font-size:6pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="120">
<p class="Default"><span style="font-size:8pt;">0.945</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">0.950</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="124">
<p class="Default"><span style="font-size:8pt;">0.951</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="125">
<p class="Default"><span style="font-size:8pt;">0.950</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:10.75pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:8pt;">0.952</span></p>
</td>
</tr>
<tr style="height:7.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:98.9pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="132">
<p class="Default"><span style="font-size:8pt;">Observations</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:89.9pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="120">
<p class="Default"><span style="font-size:8pt;">250</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="125">
<p class="Default"><span style="font-size:8pt;">249</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.25pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="124">
<p class="Default"><span style="font-size:8pt;">249</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:93.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="125">
<p class="Default"><span style="font-size:8pt;">249</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="109">
<p class="Default"><span style="font-size:8pt;">248</span></p>
</td>
</tr>
</tbody>
</table>
<p><b><span style="font-weight:normal;"><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></span></b></p>
<div class="Section52">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM10" style="text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">Notes</span></i>: Dependent variable is log (<i><span style="font-family:'EGMJK K+ Times',serif;">A</span></i>/1 −&nbsp;<i><span style="font-family:'EGMJK K+ Times',serif;">A</span></i>) where A is the total number of cocaine or heroin mentions in each MSA divided by population. Standard errors are adjusted for MSA-speciﬁc serial correlation and are reported in parentheses. MSA covariates include: personal income, unemployment, male, black, other, Hispanic, age 16–24, age 25–54, high school graduate, college graduate, log response rate, and arrest rate for drug possession. Elasticities are reported where the own-price coefﬁcient is signiﬁcant at 10% or less in a one-tailed test. Group 1 enforcement variables are: lagged 1 year drug violation arrest rate and drug sale arrest rate. Group 2 enforcement variables are: lagged 1 year drug violation arrest rate and cocaine/heroin sale arrest rate. Group 3 enforcement variables are: lagged 1 year drug violation arrest rate and marijuana sale arrest rate. Group 4 enforcement variables are: one and 2 year lagged drug violation arrest rate and cocaine/heroin sale arrest rate.</b></p>
<p class="CM28" style="margin-left:5.5pt;text-align:justify;"><span style="font-size:6pt;"><b>*</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 10%.</b></span></p>
<p class="CM28" style="margin-left:2.5pt;text-align:justify;"><span style="font-size:6pt;"><b>**</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 5%.</b></span></p>
<p class="CM28" style="text-align:justify;"><span style="font-size:6pt;"><b>***</b></span></p>
<p class="CM23" style="margin-left:12pt;text-align:justify;line-height:10pt;"><span style="font-size:8pt;"><b>Signiﬁcant at 1%.</b></span></p>
<p class="CM17" style="margin-left:96.65pt;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section53">
<p class="CM22" style="text-align:center;" align="center"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>enforcement variables includes 1-year lags of the arrest rate for any drug violation and the arrest rate for selling or trafﬁcking in any drugs. The second set includes 1-year lags of the arrest rate for any drug violation and the arrest rate for selling cocaine and opiates. The third set includes 1-year lags of the arrest rate for any drug violation and the arrest rate for selling marijuana. The ﬁnal set includes both 1-and 2-year lags of the arrest rate for any drug violation and the arrest rate for selling or trafﬁcking in any drugs.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>The top panel of&nbsp;<span style="color:rgb(0,0,100);">Table 4 </span><span style="color:black;">presents these results for cocaine mentions. The lagged enforcement variables as a group are generally signiﬁcant. The cocaine price elasticity is signiﬁcantly negative in all speciﬁcations and is robust to the inclusion of the lagged arrest rates. It decreases only marginally and ranges from </span></b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.25 to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.27. The bottom panel presents the same models for heroin mentions. Heroin price is negative and signiﬁcant in all speciﬁcations, as are the lagged enforcement variables. The price elasticity diminishes slightly in magnitude to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.08. Overall, the elasticity for the probability of a cocaine or heroin related ED episode with respect to own-price is not sensitive to the addition of lagged arrest rates, which may be capturing to some extent unobserved shocks that cause policy endogeneity.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;color:black;"><b>All of the models presented thus far have included only the relevant drug’s own price. </b></span><span style="font-size:10pt;color:rgb(0,0,100);"><b>Table 5 estimates the full cross-price model derived in Eq. (7)</b></span><span style="font-size:10pt;color:black;"><b>. In speciﬁcations 1 and 2, the dependent variable measures the log of the odds ratio of the probability of any drug-related ED episode. Since drug-related emergency room visits can be induced by one or more illicit drugs, it is appropriate to include the price of both cocaine and heroin in these speciﬁcations. Cocaine is the most frequently mentioned illicit substance, present in about 40% of ED episodes for 2002. Heroin is the third most frequently cited, after marijuana, mentioned in about 22% of the ED episodes. Speciﬁcation 1 includes only contemporaneous cocaine and heroin prices, and speciﬁcation 2 includes current and 1-year lags of both drug prices. Current cocaine price is signiﬁcantly negative, and the elasticity of the probability of a drug-related episode with respect to current cocaine price ranges from </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.17 to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.20. The corresponding elasticity for heroin is much lower at around </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.03. The 1-year lagged cocaine price is also signiﬁcantly negative, with an elasticity of </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.12. The elasticity with respect to the 1-year lagged heroin price is imprecisely estimated. Overall, increases in the price of both drugs reduce the likelihood of a drug-related health emergency, as proxied by an ED visit. The cocaine price elasticities are generally larger in magnitude than the heroin price elasticities; this may be due to the fact that cocaine is the most frequently cited in all drug-related episodes. Hence, the cocaine price would be expected to have a stronger effect. These results suggest that the negative health effects of cocaine and heroin use are positively related to current consumption and also positively related to the accumulated addictive stock.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;color:black;"><b>Speciﬁcations 3 and 4 show the results for cocaine mentions. The current cocaine price is signiﬁcant and negative, and estimates of the current own-price elasticity lie between </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.25 and </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.31. The corresponding lagged own-price elasticity is estimated at around </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.26. These magnitudes are very similar to those estimated from models that exclude the cross prices. The current heroin price is negative but insigniﬁcant.</b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;color:black;"><b>Speciﬁcations 5 and 6 present these cross-price models for the probability of a heroin mention. The current own-price elasticity is negative and signiﬁcant, and is estimated between </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.10 and </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.12. The current price of cocaine is also signiﬁcant and negative. Its corresponding elasticity lies between </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.28 and </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.36. The relatively large magnitude of this elasticity may have to do with the fact that an ED drug episode can involve multiple mentions. Since more heroin users are polydrug users, the likelihood for multiple mentions is stronger for a heroin-related episode. For instance, data on arrestees, who are likely to be hardcore users, show that 69% of all heroin users also use cocaine, compared to only 15% of all cocaine users who use heroin. A larger cross-price</b></span></p>
</div>
<p><span style="font-size:10pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section54">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="line-height:10pt;"><span style="font-size:8pt;"><b>Table 5 Drug episodes, cocaine mentions, heroin mentions: cross-price effects</b></span></p>
</div>
<p><b> </b></p>
<table class="MsoNormalTable" style="cursor:default;width:552pt;border-collapse:collapse;" border="1" cellpadding="0" cellspacing="0" width="736">
<tbody>
<tr style="height:10.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="88">
<p class="Default"><span style="font-size:7pt;">Dependent variable</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:7pt;">log odds drug episodes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="115">
<p class="Default"><span style="font-size:7pt;">log odds cocaine mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:157.9pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" colspan="2" valign="top" width="211">
<p class="Default"><span style="font-size:7pt;">log odds heroin mentions</span></p>
</td>
</tr>
<tr style="height:13.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">Speciﬁcation</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">1</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:7pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">3</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;">4</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">5</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:13.9pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">6</span></p>
</td>
</tr>
<tr style="height:10.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">Cocaine price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00248</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0009),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00217</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0006),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00389</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0019),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00316</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0013),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00454</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0015),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00356</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span><span style="font-size:7pt;">(0.0011),</span></p>
</td>
</tr>
<tr style="height:7.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="88">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.196</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.172</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">ε = 0.309</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;">ε = 0.251</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">ε = 0.360</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">ε = 0.283</span></p>
</td>
</tr>
<tr style="height:10.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:10.25pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">Heroin price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00006</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.00003),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00008</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.00003),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:10.25pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00003 (0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:10.25pt;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00007 (0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="118">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00024</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0002),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:10.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="93">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00029</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span><span style="font-size:7pt;">(0.0002),</span></p>
</td>
</tr>
<tr style="height:7.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="88">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.025</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.034</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="115">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:7.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.101</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:7.65pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">ε = 0.122</span></p>
</td>
</tr>
<tr style="height:10.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">1 Year lagged</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00154</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0009),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00326</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0017),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">0.00214 (0.0014)</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="88">
<p class="Default"><span style="font-size:7pt;">cocaine price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.124</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="115">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.263</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="118">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="93">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="88">
<p class="Default"><span style="font-size:7pt;">1 Year lagged heroin</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00003 (0.00004)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00006 (0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="93">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">.00014 (0.0001)</span></p>
</td>
</tr>
<tr style="height:8.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="109">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="115">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="118">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="93">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:8.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">MSA covariates</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:7pt;">Yes</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="115">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="101">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="118">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:8.25pt;margin:8px;padding:0 5.4pt;" valign="top" width="93">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">Year EFFECTS</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">*</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:9pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><span style="font-size:7pt;">MSA effects</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:9pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:9pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:9pt;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:9pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">Yes</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span></p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="88">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">R</span></i><span style="font-size:5pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="109">
<p class="Default"><span style="font-size:7pt;">0.888</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default"><span style="font-size:7pt;">0.896</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="115">
<p class="Default"><span style="font-size:7pt;">0.912</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="101">
<p class="Default"><span style="font-size:7pt;">0.921</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="118">
<p class="Default"><span style="font-size:7pt;">0.947</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="93">
<p class="Default"><span style="font-size:7pt;">0.951</span></p>
</td>
</tr>
<tr style="height:6.75pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:66pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="88">
<p class="Default"><span style="font-size:7pt;">Observations</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:81.75pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="109">
<p class="Default"><span style="font-size:7pt;">249</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.9pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="113">
<p class="Default"><span style="font-size:7pt;">244</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:85.9pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="115">
<p class="Default"><span style="font-size:7pt;">249</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:75.65pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="101">
<p class="Default"><span style="font-size:7pt;">244</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:88.4pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="118">
<p class="Default"><span style="font-size:7pt;">249</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:69.65pt;height:6.75pt;margin:8px;padding:0 5.4pt;" valign="bottom" width="93">
<p class="Default"><span style="font-size:7pt;">244</span></p>
</td>
</tr>
</tbody>
</table>
<p><b><span style="font-weight:normal;"><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></span></b></p>
<div class="Section54">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM10" style="text-align:justify;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Notes</span></i><span style="font-size:8pt;">: Dependent variable is log (</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">A</span></i><span style="font-size:8pt;">/1 − </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">A</span></i><span style="font-size:8pt;">) where A is the total number of drug-related ED episodes, cocaine mentions, or heroin mentions in each MSA divided by population. Standard errors are adjusted for MSA-speciﬁc serial correlation and are reported in parentheses. MSA covariates include: personal income, unemployment, male, black, other, Hispanic, age 16–24, age 25–54, high school graduate, college graduate, log response rate, and the drug possession arrest rate. Elasticities are reported where the price coefﬁcient is signiﬁcant at 10% or less in a one-tailed test.</span></b></p>
<p class="CM28" style="margin-left:5.5pt;text-align:justify;"><span style="font-size:6pt;"><b>*</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 10%.</b></span></p>
<p class="CM28" style="margin-left:2.5pt;text-align:justify;"><span style="font-size:6pt;"><b>**</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 5%.</b></span></p>
<p class="CM28" style="text-align:justify;"><span style="font-size:6pt;"><b>***</b></span></p>
<p class="CM23" style="margin-left:12pt;text-align:justify;line-height:10pt;"><span style="font-size:8pt;"><b>Signiﬁcant at 1%.</b></span></p>
<p class="CM17" style="margin-left:96.65pt;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="CM22" style="line-height:10pt;"><span style="font-size:8pt;"><b>Table 6 Cocaine and heroin mentions: Arellano–Bond estimator</b></span></p>
</div>
<p><b> </b></p>
<table class="MsoNormalTable" style="cursor:default;width:548.4pt;border-collapse:collapse;" border="1" cellpadding="0" cellspacing="0" width="731">
<tbody>
<tr style="height:10.25pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">Speciﬁcation</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">1</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">2</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">3</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">4</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">5</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:10.25pt;border-style:none none solid;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">6</span></p>
</td>
</tr>
<tr style="height:10pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:10pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">log odds cocaine mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:10pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">Own drug price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00288</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0017),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00344</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0018),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00291</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0013),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00303</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0012),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00275</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0013),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00314</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span><span style="font-size:7pt;">(0.0011),</span></p>
</td>
</tr>
<tr style="height:7.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.229</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.273</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.231</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.240</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.218</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="99">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.249</span></p>
</td>
</tr>
<tr style="height:10.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">1 Year lagged own</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00293</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00264</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0017)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00274</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0015)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00250</span><span style="font-size:5pt;color:rgb(0,0,100);">* </span><span style="font-size:7pt;">(0.0016)</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">(0.0016)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">2 Year lagged own</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00034 (0.0010)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00016 (0.0009)</span></p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">Long run elasticity</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.463</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.450</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.436</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.447</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">AR</span></i><span style="font-size:7pt;">(1)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">0.096</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">0.079</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.106</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.140</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">0.155</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">0.173</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">AR</span></i><span style="font-size:7pt;">(2)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">0.335</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">0.426</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.102</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.117</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">0.099</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">0.097</span></p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">Contemporaneous</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">Predetermined</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">Endogenous</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">Predetermined</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">Endogenous</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">Predetermined</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">Endogenous</span></p>
</td>
</tr>
<tr style="height:10.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">price treatment</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:10.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:10.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:10.5pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">log odds heroin mentions</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:10.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:10.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:10.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9.65pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">Own drug price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00018</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00025</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00027</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00028</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00019</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9.65pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00020</span><span style="font-size:5pt;color:rgb(0,0,100);">*</span><span style="font-size:7pt;">(0.0001),</span></p>
</td>
</tr>
<tr style="height:7.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.076</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.105</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.114</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.118</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.080</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="99">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.084</span></p>
</td>
</tr>
<tr style="height:10.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">1 Year lagged own</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:10.4pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00016</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00014</span><span style="font-size:5pt;color:rgb(0,0,100);">** </span><span style="font-size:7pt;">(0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00023</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:10.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00019</span><span style="font-size:5pt;color:rgb(0,0,100);">**</span><span style="font-size:7pt;">(0.0001)</span></p>
</td>
</tr>
<tr style="height:8.4pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:8.4pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">drug price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:8.4pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9.5pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">2 Year lagged own</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9.5pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9.5pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9.5pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9.5pt;margin:8px;padding:0 5.4pt;" width="108">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00039</span><span style="font-size:5pt;color:rgb(0,0,100);">*** </span><span style="font-size:7pt;">(0.0001)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.00035</span><span style="font-size:5pt;color:rgb(0,0,100);">***</span><span style="font-size:7pt;">(0.0001)</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">drug price</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">Long run elasticity</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" width="96">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" width="106">
<p class="Default"><span style="font-size:7pt;">–</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.181</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.177</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.341</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default">ε&nbsp;<span style="font-size:7pt;">= </span><span style="font-size:7pt;font-family:'EGMJK J+ MTSY',sans-serif;">−</span><span style="font-size:7pt;">0.312</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">AR</span></i><span style="font-size:7pt;">(1)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">0.035</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">0.023</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.007</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.007</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">0.007</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">0.006</span></p>
</td>
</tr>
<tr style="height:8.9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><i><span style="font-size:7pt;font-family:'EGMJK K+ Times',serif;">AR</span></i><span style="font-size:7pt;">(2)</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">0.911</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">0.949</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.574</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">0.598</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">0.415</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:8.9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">0.545</span></p>
</td>
</tr>
<tr style="height:9pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="102">
<p class="Default"><span style="font-size:7pt;">Contemporaneous</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="font-size:7pt;">Predetermined</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="font-size:7pt;">Endogenous</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">Predetermined</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="font-size:7pt;">Endogenous</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="font-size:7pt;">Predetermined</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:9pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="font-size:7pt;">Endogenous</span></p>
</td>
</tr>
<tr style="height:7.5pt;">
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:76.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" width="102">
<p class="Default"><span style="font-size:7pt;">price treatment</span></p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:72.25pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="96">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:79.4pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="106">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:80.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="108">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:84.65pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="113">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
<td style="color:rgb(0,0,0);font-size:11px;cursor:text;width:74.5pt;height:7.5pt;margin:8px;padding:0 5.4pt;" valign="top" width="99">
<p class="Default"><span style="color:windowtext;"> </span></p>
</p>
</td>
</tr>
</tbody>
</table>
<p><b><span style="font-weight:normal;"><span style="font-family:Consolas,Monaco,'Courier New',Courier,monospace;font-size:small;"><span style="font-family:Georgia,'Times New Roman','Bitstream Charter',Times,serif;font-size:small;"> </span></span></span></b></p>
<div class="Section54">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM10" style="text-align:justify;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">Notes</span></i><span style="font-size:8pt;">: Dependent variable is log (</span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">A</span></i><span style="font-size:8pt;">/1 − </span><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">A</span></i><span style="font-size:8pt;">) where A is the total number of cocaine or heroin mentions in each MSA divided by population. Own price refers to cocaine price in the logistic cocaine mention models, and heroin price in the logistic heroin mention models. Standard errors are adjusted for MSA-speciﬁc serial correlation and are reported in parentheses. MSA socioeconomic covariates include: personal income, unemployment, male, black, other, Hispanic, age 16–24, age 25–54, high school graduate, college graduate, log response rate, and arrest rate for drug possession. Elasticities are reported where the own-price coefﬁcient is signiﬁcant at 10% or less in a one-tailed test. In all models, lagged drug prices are tsreated as predetermined.</span></b></p>
<p class="CM28" style="margin-left:5.5pt;text-align:justify;"><span style="font-size:6pt;"><b>*</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 10%.</b></span></p>
<p class="CM28" style="margin-left:2.5pt;text-align:justify;"><span style="font-size:6pt;"><b>**</b></span></p>
<p class="CM19" style="margin-left:12pt;text-align:justify;"><span style="font-size:8pt;"><b>Signiﬁcant at 5%.</b></span></p>
<p class="CM28" style="text-align:justify;"><span style="font-size:6pt;"><b>***</b></span></p>
<p class="CM23" style="margin-left:12pt;text-align:justify;line-height:10pt;"><span style="font-size:8pt;"><b>Signiﬁcant at 1%.</b></span></p>
<p class="CM20" style="margin-right:97.15pt;"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section55">
<p class="CM22" style="text-align:center;" align="center"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM3" style="text-align:justify;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>elasticity of cocaine price with respect to a heroin mention may just be reﬂecting a larger own-price elasticity of cocaine price with respect to a cocaine mention for those heroin mentions that also involve cocaine. The lagged prices are insigniﬁcant. While the negative sign suggests that cocaine and heroin are complements, caution must be exercised in such an interpretation. Since up to four drugs can be mentioned for any given ED drug episode, a cocaine mention does not indicate that only cocaine was used. In fact, for the year 2002 only 28% of cocaine mentions involved solely cocaine.</b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-3.5pt;">17 </span></sup><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">Nevertheless, these cross-price elasticities do not contradict prior studies, which also suggest a complementary relationship between these two drugs (</span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">Saffer and Chaloupka, 1999</span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">; </span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">Dave, 2004</span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;">).</span></b></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>The models with leading prices and lagged enforcement rates did not substantially alter the estimates of the price elasticity, suggesting that the results are robust to policy endogeneity. </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);"><b>Table 6 </b></span><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;color:black;"><b>directly accounts for the possibility that drug prices may be predetermined or structurally endogenous by applying the Arellano-Bond estimator. The top panel presents the results for cocaine use. Speciﬁcations 1, 3, and 5 treat the current drug price as predetermined, where it is correlated with all past disturbances due to policy endogeneity. Speciﬁcations 2, 4, and 6 treat the current price as endogenous, where it is also correlated with the current disturbance due to simultaneity between supply and demand. Alternative speciﬁcations add lagged price effects. The contemporaneous cocaine price elasticity is only slightly diminished in magnitude, ranging from </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.22 to </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.27. As before, the long-run elasticity is about twice this magnitude. The bottom panel presents similar estimation for heroin mentions. The short-run heroin price elasticity is estimated to be between </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.08 and </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.12, and the long-run elasticity is between </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.31 and </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.34.</b></span></p>
<p class="CM25" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:black;"><b>Treating the cocaine and heroin prices as predetermined or endogenous and instrumenting for them does not substantially alter the results. It should also be noted that there is no evidence of autocorrelation in any of the models; no autocorrelation in non-differenced errors is equivalent to no autocorrelation beyond the ﬁrst order in ﬁrst-differenced errors. This is a necessary condition for the validity of past levels as instruments for current differences in the A–B procedure. As such, the instrumental set “passes” the test of overidentifying restrictions in all cases. If policy endogeneity is interpreted as an intertemporal omitted variables bias, then it will lead to impure serial correlation in the disturbance term. The lack of serial correlation suggests that policy endogeneity is not likely. This is consistent with the inferences drawn from the prior checks for such speciﬁcation bias.</b></span></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:black;">6. Conclusions</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;color:black;"> </span></b></p>
<p class="CM30" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;color:black;"><b>The persons sampled in DAWN constitute an important subgroup of hardcore drug users, which is often not captured by national surveys. Since these persons are more likely to be serious users, impose the heaviest costs on society, and are the targets of much illegal drug policy, studying outcomes related to their addictive consumption behavior is important from a public policy stance. Results indicate that the elasticity of the probability of a cocaine mention with respect to own price is about </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.27, and the own-price elasticity of the probability of a heroin mention is about </b></span><span style="font-size:10pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;"><b>−</b></span><span style="font-size:10pt;color:black;"><b>0.10. These elasticities are robust to various speciﬁcation checks and controls for unobservables and endogeneity.</b></span></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">17 </span></sup><span style="font-size:8pt;color:black;">From 1995 onwards, DAWN disaggregates the cocaine and heroin mentions into single drug mentions and multiple drug mentions. Cross-price effects are theoretically better estimated with the single drug mentions. In models, which employed admissions where only cocaine and only heroin are mentioned, the own-price effects are not substantially different. The cross-price effects however are imprecise.</span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section56">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333 331</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section57">
<p class="CM22" style="margin-left:96.65pt;text-align:justify;"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM4" style="text-align:justify;text-indent:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>Serious drug-related health problems as proxied by ED visits are more likely correlated with hardcore or heavy drug use than with casual use. The Drug Use Forecasting (DUF) system, main tained by the National Institute of Justice, samples and administers urine tests to arrestees in major metropolitan areas in the U.S. This subpopulation, representative of all arrestees, characterizes heavy, hardcore drug users (<span style="color:rgb(0,0,100);">Dave, 2004</span><span style="color:black;">). Using an overlapping sample of 16 cities from 1990 through 2000, the structural elasticity of the probability of drug-related ED visits with respect to the probability of drug use for heavy users can be estimated: 1.39 for cocaine and 0.91 for heroin.</span></b></span><b><sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);position:relative;top:-3.5pt;">18 </span></sup><span style="font-size:7.5pt;font-family:'EGMJK K+ Times',serif;color:rgb(0,0,100);">The price elasticity of heavy or hardcore drug use can then be imputed by dividing the DAWN elasticities from this study by the above structural elasticities. This yields a cocaine use elasticity of about </span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:rgb(0,0,100);">−</span><span style="font-size:7.5pt;color:rgb(0,0,100);">0.20 and a heroin use elasticity of </span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:rgb(0,0,100);">−</span><span style="font-size:7.5pt;color:rgb(0,0,100);">0.11. These estimates are consistent with Dave (2004)</span><span style="font-size:7.5pt;color:black;">, which used objective drug use indicators based on urinalysis from the Drug Use Forecasting system to estimate cocaine and heroin participation elasticities for hardcore users of </span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;">−</span><span style="font-size:7.5pt;color:black;">0.23 and</span><span style="font-size:7.5pt;font-family:'EGMJK J+ MTSY',sans-serif;color:black;">−</span><span style="font-size:7.5pt;color:black;">0.08, respectively.</span></b></p>
<p class="CM27" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:7.5pt;color:black;"><b>The analyses from DAWN indicate that drug prices directly affect the “bottom line”, that is higher prices improve health outcomes. The contemporaneous elasticity understates the full effect by a magnitude of about one-half. In a ﬁxed population, the elasticity estimates from this study imply that a 10% increase in the current price of cocaine will prevent about 4687 cocaine-related ED visits nationwide this year and an additional 4739 ED visits in the future. A corresponding increase in heroin price will prevent about 1014 heroin-related ED visits nationwide this year and an additional 1763 ED visits subsequently.</b></span><b><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">19 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">Hospital and ambulatory costs attributed to drug abuse were estimated at $1.04 billion for 2000 (ONDCP, 2001</span><span style="font-size:7.5pt;color:black;">). About 45% of all hospital emergency department drug-related episodes involved cocaine or heroin in 2000.</span><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">20 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">Applying this proxy share, cocaine and heroin-related hospital and ambulatory costs are approximately $466 million or higher. A 10% increase in cocaine and heroin price will prevent about 10,723 cocaine and heroin-related hospital emergency room episodes, which translates into direct hospital cost savings of $21.1 million.<sup><span style="position:relative;top:-3.5pt;">21 </span></sup>On the other extreme, if one assumes that cocaine and heroin are responsible for all of the hospital costs, the savings amount to $47.1 million. Since studies (Kuziemko and Levitt, 2004; Grossman and Chaloupka, 1998</span><span style="font-size:7.5pt;color:black;">) have shown that drug prices are positively related to enforcement efforts, they represent a tool by which the public sector can exercise control over the market for illicit, addictive, unhealthy substances and related outcomes. However, solely based on hospital cost savings, the enforcement resources necessary to drive a 10% increase in cocaine and heroin prices are most likely not cost-effective.</span><sup><span style="font-size:7.5pt;color:rgb(0,0,100);position:relative;top:-3.5pt;">22 </span></sup><span style="font-size:7.5pt;color:rgb(0,0,100);">Even if other costs of drug abuse are brought into play, it is not readily apparent that further enforcement and interdiction driven increases in drug prices are necessarily cost-effective (see Dave, 2004</span><span style="font-size:7.5pt;color:black;">). While the share of law enforcement has risen from 36 to 53% over the past 15 years, resources aimed at shifting demand, such as treatment and prevention, have remained at about one-third of the drug</span></b></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:7.5pt;color:black;position:relative;top:-3pt;">18 </span></sup><span style="font-size:8pt;color:black;">While these structural elasticities indicate a strong correlation between heavy drug use and drug-related ED visits, they should be interpreted with care since they do not account for the level or intensity of consumption.</span></b></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">19 </span></sup><span style="font-size:8pt;color:black;">These estimates are based on the elasticity estimates in </span><span style="font-size:8pt;color:rgb(0,0,100);">Table 3 </span><span style="font-size:8pt;color:black;">and nationwide drug related ED visits in 2000. If the cross-price effects are negative, then more drug-related ED visits will be prevented.</span></b></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">20 </span></sup><span style="font-size:8pt;color:black;">This is likely an overestimate because episodes may involve multiple drugs. However, cocaine and heroin are also likely to comprise a disproportionately larger component of hospital costs than the other drugs.</span></b></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">21 </span></sup><span style="font-size:8pt;color:black;">This is a net reduction in episodes after accounting for multiple drug mentions. In the drug use forecasting system, about 13.8% of arrestees who use cocaine or heroin consume both drugs.</span></b></p>
<p class="CM14" style="text-align:justify;text-indent:2.5pt;"><b><sup><span style="font-size:6pt;color:black;position:relative;top:-3pt;">22 </span></sup><span style="font-size:8pt;color:black;">Estimates suggest that such an increase in drug prices requires an increase in drug control spending of at least $2–$3 billion, to which must be added other external costs of enforcement such as productivity losses from imprisonment and the cost of resources expended by suppliers to evade detection.</span></b></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;color:black;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section58">
<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
</div>
<p><span style="font-size:12pt;font-family:'EGMJK K+ Times',serif;"><b><br style="page-break-before:auto;"></b></span></p>
<div class="Section59">
<p class="CM22" style="text-align:center;" align="center"><span style="font-family:'EGMJK K+ Times',serif;"><b> </b></span></p>
<p class="CM22" style="text-align:justify;line-height:12pt;"><span style="font-size:10pt;font-family:'EGMJK K+ Times',serif;"><b>control budget. The low magnitudes of the drug outcome-price response suggest that additional increases in the drug control budget should consider a larger role for demand-driven interventions.</b></span></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;">Acknowledgements</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;"> </span></b></p>
<p class="CM22" style="text-align:justify;text-indent:12pt;line-height:12pt;"><span style="font-size:10pt;"><b>Funding for this research was provided by a grant from the Robert Wood Johnson Founda tion’s Substance Abuse Research Program to the National Opinion Research Center, University of Chicago. I would like to thank Michael Grossman, Gary Becker, Erdal Tekin, and two anonymous referees for valuable comments and suggestions. I am indebted to Judy Ball and the Substance Abuse and Mental Health Services Administration for providing the DAWN data. I am very grate ful to the John M. Olin Foundation for providing post-doctoral research support at the Wharton School, University of Pennsylvania.</b></span></p>
<p class="CM25" style="text-align:justify;line-height:12pt;"><b><b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;">References</span></b><span style="font-size:10pt;font-family:'EGMJL L+ Times',serif;"> </span></b></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Arellano, M., Bond, S., 1991. Some tests of speciﬁcation for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies 58, 277–297.</b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Baltagi, B.H., 2002. Econometric Analysis of Panel Data. John Wiley and Sons, New York.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Basov, S., Jacobson, M., Miron, J.A., 2001. Prohibition and the market for illegal drugs: an overview of recent history. World Economics 2 (4), 133–158.</b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Becker, G.S., Murphy, K.M., 1988. A theory of rational addiction. Journal of Political Economy 96 (4), 675–700.</b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Bureau of Census website:&nbsp;<a href="http://www.census.gov/"><span style="color:rgb(0,0,100);text-decoration:none;">www.census.gov</span><span style="color:black;text-decoration:none;">.</span></a></b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Bureau of Economic Analysis website:&nbsp;<a href="http://www.bea.gov/"><span style="color:rgb(0,0,100);text-decoration:none;">www.bea.gov</span><span style="color:black;text-decoration:none;">.</span></a></b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Bureau of Labor Statistics website:&nbsp;<a href="http://www.bls.gov/"><span style="color:rgb(0,0,100);text-decoration:none;">www.bls.gov</span></a> .</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Caulkins, J.P., 2001a. Should the DEA’s STRIDE data be used for economic analyses of markets for illegal drugs: comment. Journal of the American Statistical Association 96, 1263–1264.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Caulkins, J.P., 2001b. Drug prices and emergency department mentions for cocaine and heroin. American Journal of Public Health 91 (9), 1446–1448.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Caulkins, J.P., 1996. Estimating elasticities of demand for cocaine and heroin with duf data, Working Paper (Pittsburgh: Heinz School of Public Policy, Carnegie Mellon University).</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Caulkins, J.P., Padman, R., 1993. Quantity discounts and quality premia for illicit drugs. Journal of the American Statistical Association 88, 748–757.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Crane, B.D., Rivolo, A.R., Comfort, G.C., 1997. An Empirical Examination of Counterdrug Interdiction Program Effec tiveness. Institute for Defense Analysis, Alexandria, Virginia.</b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Dave, D., 2004. Illicit drug use among arrestees and drug prices, NBER Working Paper 10648.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Grossman, M., Chaloupka, F.J., 1998. The demand for cocaine by young adults: a rational addiction approach. Journal of Health Economics 17 (4), 427–474.</b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;"><b>Grossman, M., Chaloupka, F.J., Shim, K., 2002. Illegal drug use and public policy. Health Affairs 21, 134–144.</b></span></p>
<p class="CM32" style="text-align:justify;text-indent:11.9pt;line-height:10pt;"><span style="font-size:8pt;"><b>Gruber, J., K¨</b></span></p>
<p class="Default" style="text-indent:31.25pt;line-height:10pt;margin:0 104pt .0001pt 6.75pt;"><span style="font-size:8pt;color:windowtext;"><b>oszegi, B., 2001. Is addiction rational? Theory and evidence. Quarterly Journal of Economics 116 (4), 1261–1303. Harwood, H., Fountain D., Livermore, G., 1992. The economic costs of alcohol and drug abuse in the United States (Rockville, MD: National Institutes of Health, 1998). Horowitz, J.L., 2001. Should the DEA’s STRIDE data be used for economic analyses of markets for illegal drugs. Journal of the American Statistical Association 96, 1254–1262. Hyatt Jr., R.R., Rhodes, W., 1995. The Price and purity of cocaine: the relationship to emergency room visits and death, and to drug use among arrestees. Statistics in Medicine 14, 655–668.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Kessler, R.C., McGonagle, K.A., Zhao, S., Nelson, C.B., Hughes, M., Eshleman, S., Wittchen, H.U., Kendler, K.S., 1994. Lifetime and 12-month prevalence of DSM-III-R psychiatric disorders in the United States: Results from the National Comorbidity Survey. Archives of General Psychiatry 51, 8–19.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Kuziemko, I., Levitt, S., 2004. An empirical analysis of imprisoning drug offenders. Journal of Public Economics 88, 2043–2066.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;"><b>Manski C.F., Pepper. J.V., Petrie, C.V. (Eds.), 2001. Informing America’s policy on illegal drugs: what we do not know keeps hurting us, Committee on Data and Research for Policy on Illegal Drugs, National Research Council (Washington, DC: National Academy Press).</b></span></p>
</div>
<p><span style="font-size:8pt;font-family:'Times New Roman',serif;"><b><br style="page-break-before:auto;"></b></span></p>
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<p class="Default"><span style="color:windowtext;"><b> </b></span></p>
<p class="CM22" style="text-align:center;" align="center"><b><i><span style="font-family:'EGMJK K+ Times',serif;">D. Dave / Journal of Health Economics 25 (2006) 311–333</span></i><span style="font-family:'EGMJK K+ Times',serif;"> </span></b></p>
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<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b>Model, K.E., 1993. The effect of marijuana decriminalization on hospital emergency room drug episodes: 1975–1978. Journal of the American Statistical Association 88 (423), 737–747.</b></span></p>
<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b>Ofﬁce of National Drug Control Policy, 2003. Drug policy information clearing house fact sheet (Washington, DC: Ofﬁce of National Drug Control Policy).</b></span></p>
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<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b>Rhodes, W., Hyatt, R., Scheiman, P., 1994. The price of cocaine, heroin, and marijuana, 1981–1983. The Journal of Drug Issues 24, 383–402.</b></span></p>
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<p class="CM21" style="margin-left:11.9pt;text-align:justify;text-indent:-11.85pt;"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b>Rivara, F., Tollefson, S., Tesh, E., Gentilello, L., 2000. Screening trauma patients for alcohol problems: are insurance companies barriers? The Journal of Traum: Injury, Infection and Critical Care 48, 115–118.</b></span></p>
<p class="CM10" style="text-align:justify;"><span style="font-size:8pt;font-family:'EGMJK K+ Times',serif;"><b>Saffer, H., Chaloupka, F.J., 1999. The Demand for illicit drugs. Economic Inquiry 37 (3), 401–411. </b></span></p>
<p><b> </b></p>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">Abstract</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">This paper estimates the empirical relationship between cocaine and heroin prices and drug-related hospital</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">ED admissions for 21 U.S. cities. These outcomes bypass some of the problems with self-reports and</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">directly measure a component of healthcare costs associated with heavy drug usage. The price elasticity</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">of the probability of a cocaine and heroin episode is estimated at −0.27 and −0.10, respectively. A 10%</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">increase in prices can prevent 10,723 cocaine and heroin-related ED visits, with cost savings between $21</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">million and $47 million. These low magnitudes of the drug outcome-price response have implications for</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">the cost-effectiveness of enforcement-driven price increasesAbstract</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">This paper estimates the empirical relationship between cocaine and heroin prices and drug-related hospital</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">ED admissions for 21 U.S. cities. These outcomes bypass some of the problems with self-reports and</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">directly measure a component of healthcare costs associated with heavy drug usage. The price elasticity</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">of the probability of a cocaine and heroin episode is estimated at −0.27 and −0.10, respectively. A 10%</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">increase in prices can prevent 10,723 cocaine and heroin-related ED visits, with cost savings between $21</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">million and $47 million. These low magnitudes of the drug outcome-price response have implications for</div>
<div id="_mcePaste" style="position:absolute;left:-10000px;top:0;width:1px;height:1px;">the cost-effectiveness of enforcement-driven price increases.</div>
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				<category><![CDATA[Narcotics Trafficking]]></category>
		<category><![CDATA[Seguridad Pública]]></category>
		<category><![CDATA[Amezcua Contreras]]></category>
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		<description><![CDATA[Source:  This is a conceptual model developed by Matthew Maher while researching the psychoactive substance industry for the better part of the past 4 years.  Graph was created in Microsoft Word on October 14, 2009.<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=293&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
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		<title>2009 10 16: In Mexican Drug War, Investigators Are Fearful</title>
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		<pubDate>Sat, 17 Oct 2009 16:20:44 +0000</pubDate>
		<dc:creator>Maher</dc:creator>
				<category><![CDATA[Seguridad Pública]]></category>
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		<description><![CDATA[Source: New York Times The hit men moved in on their target, shot him dead and then disappeared in a matter of seconds. It would have been a perfect case for José Ibarra Limón, one of this violent border city’s most dogged crime investigators — had he not been the victim. Mexico has never been [...]<img alt="" border="0" src="http://stats.wordpress.com/b.gif?host=focusmexico.wordpress.com&amp;blog=989898&amp;post=289&amp;subd=focusmexico&amp;ref=&amp;feed=1" width="1" height="1" />]]></description>
			<content:encoded><![CDATA[<p>Source: <a href="http://www.nytimes.com/2009/10/17/world/americas/17juarez.html?_r=1&amp;partner=rss&amp;emc=rss">New York Times</a></p>
<p style="color:black;font-size:medium;line-height:24px;">The hit men moved in on their target, shot him dead and then disappeared in a matter of seconds. It would have been a perfect case for José Ibarra Limón, one of this violent border city’s most dogged crime investigators — had he not been the victim.</p>
<p style="color:black;font-size:medium;line-height:24px;"><img class="aligncenter" title="Narcos" src="http://graphics8.nytimes.com/images/2009/10/16/world/mexico.650.1.jpg" alt="" width="650" height="450" /></p>
<p style="color:black;font-size:medium;line-height:24px;"><a style="color:#000066;" title="More news and information about Mexico." href="http://topics.nytimes.com/top/news/international/countriesandterritories/mexico/index.html?inline=nyt-geo">Mexico</a> has never been particularly adept at bringing criminals to justice, and the drug war has made things worse. Investigators are now swamped with homicides and other drug crimes, most of which they will never crack. On top of the standard obstacles — too little expertise, too much corruption — is one that seems to grow by the day: outright fear of becoming the next body in the street.</p>
<p style="color:black;font-size:medium;line-height:24px;">Mr. Ibarra was killed on July 27 in what his bosses at the federal attorney general’s office consider an assassination related to a case he was investigating. As if to prove the point, less than a month later, one of the lawyers who had worked for Mr. Ibarra <a style="color:#000066;" title="Article on this killing, Committee to Protect Journalists" href="http://cpj.org/blog/2009/08/second-investigator-of-journalists-death-murdered.php">also turned up dead</a>. Two days afterward, an investigator named to replace Mr. Ibarra insisted on being transferred out of Ciudad Juárez, Mexico’s murder capital.</p>
<p style="color:black;font-size:medium;line-height:24px;">The current prosecutor investigating Mr. Ibarra’s cases is working anonymously, his or her name kept secret by the government.</p>
<p style="color:black;font-size:medium;line-height:24px;">The Mexican government knows that revamping its problem-plagued justice system is an essential part of breaking the cartels that control vast areas of Mexico. Major efforts are under way to make the judiciary faster and fairer, and the United States <a style="color:#000066;" title="Report on U.S. assistance, Congressional Research Service (PDF file)" href="http://fpc.state.gov/documents/organization/103694.pdf">has contributed millions of dollars</a> to help bring more criminals to justice.</p>
<p style="color:black;font-size:medium;line-height:24px;">But even with training programs by American lawyers and judges, American aid to improve <a style="color:#000066;" title="More articles about Forensic Science." href="http://topics.nytimes.com/top/reference/timestopics/subjects/f/forensic_science/index.html?inline=nyt-classifier">forensics</a> and screen more effectively for corruption, as well as other cross-border initiatives, the traffickers and the cumulative pressures they are putting on the judiciary are straining it as never before.</p>
<p style="color:black;font-size:medium;line-height:24px;">“Obviously what happened affects us,” said Hector García Rodríguez, the federal prosecutor in Juárez and the supervisor of the slain investigator. “We’re still working. We can’t stop. But we know the dangers we face.”</p>
<p style="color:black;font-size:medium;line-height:24px;">President <a style="color:#000066;" title="More articles about Felipe Calderón." href="http://topics.nytimes.com/top/reference/timestopics/people/c/felipe_calderon/index.html?inline=nyt-per">Felipe Calderón</a> points to the arrests of more than 50,000 people on drug charges since he began his antidrug offensive in December 2006. Many of the arrests appear to have come from top-notch detective work. Other suspects, though, are quietly released after they have been paraded before the news media.</p>
<p style="color:black;font-size:medium;line-height:24px;">The federal government refused to provide statistics on how many arrests had resulted in convictions, how many suspects were still under investigation or how many arrests had proved to be mistakes. But <a style="color:#000066;" title="Listing and summaries of scholarly publications" href="http://www.justiceinmexico.org/resources/publications.php">independent reviews by scholars</a> suggest that only about a quarter of crimes in Mexico are ever reported and that only a small fraction ever result in convictions.</p>
<p style="color:black;font-size:medium;line-height:24px;">Compounding matters is the sheer number of crimes, especially murders. On a single September night in Ciudad Juárez, 18 men were <a style="color:#000066;" title="Times article" href="http://www.nytimes.com/2009/09/04/world/americas/04mexico.html">shot to death in a drug treatment center</a>near the border, more than the number of killings all year long in El Paso, just across the Texas border.</p>
<p style="color:black;font-size:medium;line-height:24px;">“Law enforcement is overwhelmed,” said <a style="color:#000066;" title="Dr. Shirk’s home page" href="http://web.mac.com/davidashirk/Shirk_Site/Homepage.html">David A. Shirk</a>, a professor at the University of San Diego and the principal investigator for the <a style="color:#000066;" title="Project’s Web site" href="http://www.justiceinmexico.org/">Justice in Mexico Project</a>, a binational research initiative. “If you have murders with 13 bodies one day and then you have 4 more the next, there’s not a lot of investigation into who pulled the trigger specifically.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Fear Gets in the Way</p>
<p style="color:black;font-size:medium;line-height:24px;">One of the two dozen or so cases that Mr. Ibarra had been investigating involved <a style="color:#000066;" title="Reporters Without Borders account of the killing" href="http://www.rsf.org/Journalist-murdered-by-drug-gang.html">the killing of a journalist, Armando Rodríguez Carreón</a>, 40, who had produced a string of scoops as the longtime crime reporter for the newspaper El Diario. Mr. Rodríguez was shot to death last Nov. 13 as he prepared to take his 8-year-old daughter to school. She was at his side and saw her father struck by at least 10 bullets.</p>
<p style="color:black;font-size:medium;line-height:24px;">“It was similar to hundreds of homicides we’ve had here,” remarked Mr. García, Mr. Ibarra’s supervisor. “It was an execution.”</p>
<p style="color:black;font-size:medium;line-height:24px;">It is also similar in that the perpetrators remain at large. Fear prevents many cases from being solved because investigators hesitate to dig too deeply, and witnesses refuse to talk.</p>
<p style="color:black;font-size:medium;line-height:24px;">“Nobody cooperates with anything,” Mr. García complained. “They’re too afraid. Nobody wants to say what they saw. Nobody wants to give you a plate number.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Mexico is promoting confidential telephone lines and rewards to encourage witnesses, but resistance lingers, especially when news reports circulate about threats made to those who do call in. And there is considerable doubt that the reward money is worth the risk.</p>
<p style="color:black;font-size:medium;line-height:24px;">The attacks on investigators only magnify the problem.</p>
<p style="color:black;font-size:medium;line-height:24px;">“If you had a difficult case, you went to him and said, ‘Ibarra, what do you think?’ ” Mr. García said. Now in trying to solve Mr. Ibarra’s murder, his colleagues wonder aloud how he might have pursued his killers, possibly four men in all, who shot him many times in the head with .45-caliber and 9-millimeter weapons.</p>
<p style="color:black;font-size:medium;line-height:24px;">The slain journalist’s wife, Blanca Martínez, said that she had met once with Mr. Ibarra, but that she did not think he had been murdered for closing in on her husband’s killers, despite his reputation for solving difficult crimes.</p>
<p style="color:black;font-size:medium;line-height:24px;">“I don’t think he was really investigating,” she said. Prosecutors had asked once to interview her young daughter, a witness, but had never followed up, Ms. Martínez said.</p>
<p style="color:black;font-size:medium;line-height:24px;">Pedro Torres, Mr. Rodríguez’s editor and close friend, was similarly unimpressed with the government’s effort to find the killers of his top police reporter.</p>
<p style="color:black;font-size:medium;line-height:24px;">Investigators waited for months before visiting the newsroom, interviewing some of Mr. Rodríguez’s co-workers and getting copies of his articles. The government has not yet established whether Mr. Rodríguez’s killing stemmed from his work as a police reporter, infuriating his colleagues, who are convinced that such a connection is clear.</p>
<p style="color:black;font-size:medium;line-height:24px;">“He’s the godfather of my child,” Mr. Torres said. “I’ve known him for years. They’ve never talked to me. What kind of investigation is that?”</p>
<p style="color:black;font-size:medium;line-height:24px;">Slipshod Investigations</p>
<p style="color:black;font-size:medium;line-height:24px;">One of the forensic specialists who photograph bodies, lift fingerprints and count spent bullets at Juárez homicide scenes complained that by the time he arrived at a site, significant tampering had already taken place.</p>
<p style="color:black;font-size:medium;line-height:24px;">“The soldiers come in and walk over everything,” complained the specialist, who spoke anonymously in an out-of-the-way steak restaurant because his supervisors had not authorized him to give an interview. “They leave their fingerprints all around. They want to know who died, so they move the body. They kick the bullets. They don’t realize they’re contaminating the crime scene.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Thousands of soldiers, deployed by the president in his war against the cartels, patrol the streets of Juárez alongside the local police. Trained to take on enemy combatants, they are far less familiar with the sanctity of crime scenes, the rules of evidence and other basics of law enforcement.</p>
<p style="color:black;font-size:medium;line-height:24px;">Many police officers also meddle with crime scenes, sometimes out of incompetence, but sometimes to throw off the investigation or to enrich themselves.</p>
<p style="color:black;font-size:medium;line-height:24px;">“If the victim’s watch is missing, that could be important because it could mean it was a robbery,” the forensic specialist said. “But we can’t rule out that one of the police officers at the scene took it.”</p>
<p style="color:black;font-size:medium;line-height:24px;">The joint military-police mission now combating traffickers in Juárez presents a more positive picture. It cites the recent arrests of three men suspected of being hired killers, who in August implicated themselves and a fourth suspect in 211 homicides, an eye-popping number even in Mexico.</p>
<p style="color:black;font-size:medium;line-height:24px;">To trumpet the breakthrough, the government took out newspaper ads listing all the people the suspects were accused of killing. One man alone was linked to 101 murders.</p>
<p style="color:black;font-size:medium;line-height:24px;">The authorities said the arrests resulted from ballistics investigations, which are modern enough here in Chihuahua State that the El Paso Police Department used them for years for its own investigations. But the men also confessed to the murders, the authorities said, and questions were raised in the local news media about whether the detainees had been coerced, a frequent problem in Mexico.</p>
<p style="color:black;font-size:medium;line-height:24px;">“We solve our crimes with evidence, and they solve them with confessions,” said the El Paso County sheriff, Richard D. Wiles. “We have strict rules to follow on how to get confessions. The rules are looser over there.”</p>
<p style="color:black;font-size:medium;line-height:24px;">In <a style="color:#000066;" title="The assessment (PDF file)" href="http://www.wilsoncenter.org/news/docs/State%20Dept.%20Report%20on%20Mexico%27s%20Human%20Rights.pdf">a recent assessment of Mexico’s adherence to human rights</a>, the State Department noted that 21 torture complaints and 580 complaints of cruel or degrading treatment had been made against the Mexican authorities in 2008, a significant increase from the year before.</p>
<p style="color:black;font-size:medium;line-height:24px;">And yet, the report said: “Since 2007, we are not aware that any official has ever been convicted of torture, giving rise to concern about impunity. Despite the law’s provisions to the contrary, police and prosecutors have attempted to justify an arrest by forcibly securing a confession of a crime.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Without a Trace</p>
<p style="color:black;font-size:medium;line-height:24px;">Along the border, many victims are never found, leaving relatives — and investigators — in a state of limbo.</p>
<p style="color:black;font-size:medium;line-height:24px;">Fernando Ocegueda Flores, a founder of an advocacy group in Tijuana for relatives of the disappeared, felt an odd mixture of despair and relief in January, when the police announced that a suspect, Santiago Meza López, had admitted to disposing of the remains of 300 bodies for a drug cartel by dissolving them in barrels of lye.</p>
<p style="color:black;font-size:medium;line-height:24px;">Mr. Ocegueda thought that maybe his son, abducted in 2007, had been one of the victims of the Pozolero, a nickname for Mr. Meza that translates roughly as the stew maker. Mr. Ocegueda thought his years of trying to learn his son’s fate might end.</p>
<p style="color:black;font-size:medium;line-height:24px;">Federal authorities took Mr. Meza to Mexico City for questioning and began testing some remains. But the bones were so corroded by the lye that no DNA was found, the authorities have said.</p>
<p style="color:black;font-size:medium;line-height:24px;">Mr. Ocegueda contends that the investigators should be doing more, like digging up the yard where Mr. Meza said he had disposed of the bodies after boiling them, to search for more bones to test. The yard is guarded by the federal police, but a human jaw bone with a tooth attached and various suspicious mounds of earth were visible inside.</p>
<p style="color:black;font-size:medium;line-height:24px;">Frustrated, Mr. Ocegueda said that if the site was not properly investigated soon, he and other relatives planned to storm the place with shovels and begin digging themselves.</p>
<p style="color:black;font-size:medium;line-height:24px;">But a coroner’s investigator who has reviewed some of the remains from such barrels in other cases said the traffickers covered their tracks well.</p>
<p style="color:black;font-size:medium;line-height:24px;">“You can’t tell by looking that it’s a human being,” said the investigator, who was not authorized to speak publicly. “It’s a glob of something, and the DNA is gone.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Cross-Border Police Work</p>
<p style="color:black;font-size:medium;line-height:24px;">Every month, law enforcement officials from both sides of the border, whether from the <a style="color:#000066;" title="More articles about the Federal Bureau of Investigation." href="http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal_bureau_of_investigation/index.html?inline=nyt-org">F.B.I.</a> or the Tijuana police, gather to talk shop at a chain restaurant in southern California.</p>
<p style="color:black;font-size:medium;line-height:24px;">“Without cooperation, so many cases would sit still,” said the California investigator who convenes the sessions, Val Jimenez, executive director of the International Law Enforcement Officers Association. Cross-border policing has caught child molesters, car thieves and murderers.</p>
<p style="color:black;font-size:medium;line-height:24px;">It also helped solve one particularly grisly missing person case.</p>
<p style="color:black;font-size:medium;line-height:24px;">Daniel LaPorte, 27, disappeared after heading across the border to Baja California from San Diego last year. Eventually, his green Cadillac was found south of Tijuana, outside Rosarito Beach, with four dead people in and around it. None were Mr. LaPorte.</p>
<p style="color:black;font-size:medium;line-height:24px;">As the family’s private investigator looked into the case with police officers from San Diego and Baja California, a Mexican detective mentioned that a barrel apparently containing human remains had been discovered not far from the location of the quadruple homicide.</p>
<p style="color:black;font-size:medium;line-height:24px;">Luck played a role in identifying the remains. It had rained heavily after the barrel had been abandoned on a remote hillside, investigators said. The barrel had fallen over and some of the bones had been washed away by the rain, diluting the corrosive solution and preventing all the DNA from being stripped away. Laboratory tests conducted in Tijuana showed that the remains were Mr. LaPorte’s.</p>
<p style="color:black;font-size:medium;line-height:24px;">Investigators eventually determined that Mr. LaPorte had been involved in trafficking <a style="color:#000066;" title="More articles about marijuana." href="http://topics.nytimes.com/top/reference/timestopics/subjects/m/marijuana/index.html?inline=nyt-classifier">marijuana</a> from Mexico to Rhode Island, some of it in surfboards. He had probably bought several tons of marijuana a year, the family’s investigator said.</p>
<p style="color:black;font-size:medium;line-height:24px;">Mr. Jimenez and some of the other law enforcement officials who work on these joint investigations are sympathetic to the policing challenges their Mexican counterparts face.</p>
<p style="color:black;font-size:medium;line-height:24px;">“We don’t think we’re going to die when we go to work, but over there it is a real possibility,” Mr. Jimenez said. “A lot of them want to do good police work, but there are some cases they can’t do because of the pressure of the cartels.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Arresting the Wrong People</p>
<p style="color:black;font-size:medium;line-height:24px;">Alejandra González Licea said the only conceivable ties she had ever had to drug trafficking were purely academic ones. A linguistics professor who wrote her thesis on narcocorridos, the Mexican ballads that often extol the exploits of drug bosses, Ms. González found herself blindfolded and handcuffed by soldiers this year and interrogated about which drug cartel was employing her.</p>
<p style="color:black;font-size:medium;line-height:24px;">Her answer — the Autonomous University of Baja California — did not impress her interrogators. The professor and her husband endured months of detention before the charges were quietly dropped. The $28,000 in cash they were caught carrying was a gift from an uncle in the United States to help them remodel their home, it was determined, not illicit drug profits they were laundering.</p>
<p style="color:black;font-size:medium;line-height:24px;">After her initial detention, Ms. González was led to a news conference, where journalists were gathered to photograph her. She stood next to her husband and two men she did not know. On the table before them, much to her surprise, was nearly half a million dollars.</p>
<p style="color:black;font-size:medium;line-height:24px;">It turned out that she was being grouped with two money-laundering suspects arrested the same night with a much larger amount of cash. It would take two and a half months before a judge would throw out the case against her and her husband for lack of proof.</p>
<p style="color:black;font-size:medium;line-height:24px;">Mexico has approved a sweeping overhaul of its judiciary to replace its closed-door judicial proceedings with trials in which defendants like Ms. González are considered innocent until proved guilty. But revamping the system is no easy feat. It requires retraining lawyers and judges, rebuilding courtrooms and improving forensic technology, all while trying to keep on top of a flood of new cases.</p>
<p style="color:black;font-size:medium;line-height:24px;">Police forces are also getting an overhaul. Officers in Tijuana and Juárez, two of the most violence-prone cities, have been fired en masse after being linked to organized crime. The two federal police agencies have been reorganized under a single commander. Beyond that, a new police training institute has been established and the government has set up a national database to share information and intelligence.</p>
<p style="color:black;font-size:medium;line-height:24px;">Still, Ms. González, now back at her teaching job, shook her head when asked about the Mexican government’s competence. She doubts the official statistics, since she figures she was one of the 50,000 people that the president cited as drug suspects.</p>
<p style="color:black;font-size:medium;line-height:24px;">“They didn’t even find out that I wrote my thesis on narcocorridos,” she said of those who were prosecuting her. “Good thing they didn’t find out.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Doing What Police Won’t</p>
<p style="color:black;font-size:medium;line-height:24px;">The authorities discourage civilians from investigating their own cases because of the obvious dangers involved. But many grow tired of waiting for the police and, having no luck with private investigators, conduct their own inquiries.</p>
<p style="color:black;font-size:medium;line-height:24px;">Cristina Palacios, president of the Citizens’ Association Against Impunity, recounted how one of her members, a Tijuana woman whose brother had been kidnapped, offered a reward herself, furious at how little had been done to investigate the disappearance.</p>
<p style="color:black;font-size:medium;line-height:24px;">Shadowy men contacted the woman, and she agreed to be taken away with a blindfold, Ms. Palacios said. Soon the woman found herself in a room where a man tied to a chair was being beaten by a group of men. The man confessed to killing her brother.</p>
<p style="color:black;font-size:medium;line-height:24px;">The next day, the woman, who declined to speak on the record about what occurred, saw in the newspaper that a body had been found. It looked like the man in the chair, Ms. Palacios said.</p>
<p style="color:black;font-size:medium;line-height:24px;">Mr. Ocegueda, in search of his missing son, had a similar experience. One night, in the course of his personal investigation, he allowed himself to be led away with his eyes covered and driven for about 40 minutes by a man he met who had links to traffickers.</p>
<p style="color:black;font-size:medium;line-height:24px;">Eventually, he was led into a home, where he said a gruff man told him, “You’re very brave to come here.”</p>
<p style="color:black;font-size:medium;line-height:24px;">Apparently impressed by his gumption, the man gave Mr. Ocegueda a shot of whiskey and told him that his son had been killed and would never be found. His remains had been destroyed in lye, the man said.</p>
<p style="color:black;font-size:medium;line-height:24px;">But Mr. Ocegueda, continuing to investigate, later found another organized crime figure, who led him in another direction. This time, he was told his son was alive and working for traffickers. Now, he does not know what to think.</p>
<p style="color:black;font-size:medium;line-height:24px;">“The police are supposed to be doing this, not me,” he said. “But they don’t want to investigate because they don’t want to solve these crimes. They might be killed if they find the truth. I don’t care if they kill me.”</p>
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