TY - JOUR AU - Pacula,Rosalie Liccardo TI - Adolescent Alcohol and Marijuana Consumption: Is There Really a Gateway Effect? JF - National Bureau of Economic Research Working Paper Series VL - No. 6348 PY - 1998 Y2 - January 1998 UR - http://www.nber.org/papers/w6348 L1 - http://www.nber.org/papers/w6348.pdf N1 - Author contact info: Rosalie Liccardo Pacula RAND Corporation 1776 Main Street P.O. Box 2138 Santa Monica, CA 90407-2138 Tel: 310/393-0411 ext. 6494 Fax: 858/350-8798 E-Mail: pacula@rand.org AB - This research analyzes the contemporaneous and intertemporal relationship between the demands for alcohol and marijuana by youths and young adults. A general theory of multi-commodity habit formation is developed and tested using data from the 1983-1984 waves of the National Longitudinal Survey of Youth. An Adjusted Tobit specification is employed for estimating the empirical model. Habit persistence is distinguished from unobserved heterogeneity through a reduced form instrumental variable technique. The results show that higher beer prices significantly reduce the demand for both alcohol and marijuana, indicating a contemporaneous complementarity between these two substances even after controlling for commodity-specific habit formation. Further, prior use of alcohol and cigarettes significantly increases the likelihood of currently using marijuana, providing evidence in support of the gateway hypothesis. ER -