The Effect of Cocaine and Heroin Prices and Arrests on Cocaine and Heroin-Related Deaths

This paper examines the effects of cocaine and heroin prices and possession arrests on medical examiner mentions of cocaine and heroin in 37 metropolitan statistical areas (MSAs) over the 1990-1998 period. Using data from DAWN, STRIDE, Uniform Crime Reports, BEA, BLS, and the Census Bureau, OLS regression results show that without the inclusion of MSA dummies, there is a highly significant negative relationship between cocaine and heroin prices and mentions of both drugs. However, when MSA dummies are added, only cocaine prices have a significant negative relationship with cocaine and heroin mentions, while heroin prices are no longer significantly related with mentions of either type. Possession arrests rates do not significantly affect cocaine or heroin mentions regardless of whether MSA dummies are included. * The author would like to thank Dr. Jeffrey DeSimone for his help with all aspects of this paper.