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Economic Costs of Drug Abuse in the United States, 1992-1998

NCJ Number
190636
Author(s)
Ellen Bouchery; Henrick Harwood
Date Published
September 2001
Length
99 pages
Annotation
This is a report prepared by the Executive Office of the President, Office of National Drug Control Policy detailing the economic costs of drug abuse in the United States between 1992 and 1998.
Abstract
This report presents a calculation of the economic costs of illicit drug abuse in America for the period of time beginning in 1992 and ending in 1998. Projections of these same costs for 1999 and 2000 are also included in the report. Costs are measured across several categories including health care costs, productivity losses, crime related costs, and costs of other effects (these other effects include goods and services lost to crime and the impact upon social welfare). Drug abuse is defined as "consequences of using illicit drugs, as well as societal costs pertaining to the enforcement of drug laws." Illicit drugs are defined as cocaine, heroin, or marijuana. The study methodology utilized U.S. Public Health Service cost-of-illness study guidelines and is therefore structured to separate non-health costs from health costs and loss of the value of goods and services from the value of lost productivity. Policy evaluations and calculations of the amount of money spent on illicit drugs are not included in the report and the calculations are based upon secondary research. The results of the study showed an increase in the costs of drug abuse during the course of the studied period. Drug abuse related health care costs increased during that period, but at a rate less than the consumer price index rate for health care costs. The costs of productivity losses, costs of other effects, and crime related costs increased at a rate of approximately 6.0, 6.6 and 6.5 percent respectively on an annualized basis. For the studied period, the majority of drug abuse costs were attributable to productivity losses (including productivity lost through incarceration, crime careers, and drug abuse related illnesses) and premature death. 62 tables, 40 references, 3 appendices