TY  - JOUR
AU  - Markowitz,Sara
AU  - Tauras,John
TI  - Even For Teenagers, Money Does Not Grow on Trees: Teenage Substance Use and Budget Constraints
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 12300
PY  - 2006
Y2  - June 2006
UR  - http://www.nber.org/papers/w12300
L1  - http://www.nber.org/papers/w12300.pdf
N1  - Author contact info:
Sara Markowitz
Department of Economics
Emory University
Rich Building, 3rd floor
1602 Fishburne Dr.
Atlanta, GA 30322
Tel: (404) 712-8167
E-Mail: sara.markowitz@emory.edu

John A. Tauras
Department of Economics
University of Illinois at Chicago
601 S. Morgan Street, Room 2129
Chicago, IL  60607-7121
Tel: 312/413-3289
Fax: 312/996-3344
E-Mail: tauras@uic.edu
M1  - published as Markowitz, S and Tauras, J "Even For Teenagers, Money Does Not Grow on Trees: Teenage Substance Use and Budget Constraints" Cited in London Financial Times, September 23, 2006.
M2  - featured in NBER digest on 2006-06-12
AB  - This paper is about the spending choices of youth, with a particular focus on how the demand for cigarettes, alcohol and marijuana are influenced by changes in the prices of other products. Youth tend to have small incomes and limited wants, with the result that many students spend the bulk of their income on only a few items. Fast food, clothing and entertainment make up the majority of products purchased by teenagers. The hypothesis to be tested in this project is that changes in the prices of the other goods commonly bought by teenagers will affect budget allocations and thereby affect the demand for substances. We estimate own and cross price effects using the prices of cigarettes, alcohol, marijuana and other consumer products including gasoline, clothing, entertainment, and fast food. Income effects are also estimated and show that teens with higher incomes and allowances are more likely to use substances. The policy implications of the results are discussed.
ER  -