TY  - RPRT
        AU  - Hansen, Jörgen
AU  - Davalloo, Golnaz
        TI  - Persistent Marijuana Use: Evidence from the NLSY
        PY  - 2023/Sep/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 16446
        UR  - https://www.iza.org/publications/dp16446
        AB  - We analyze persistence in marijuana consumption utilizing data from the 1997 cohort of the National Longitudinal Survey of Youth (NLSY97). We allow for three sources of persistence: pure state dependence, time invariant unobserved heterogeneity and persistence in idiosyncratic, time-varying shocks. We also consider intensity of consumption based on days of use per month and estimate a dynamic ordered Probit model using simulated Maximum Likelihood. We consider a Polya model that generalizes the more commonly used Markov models. The results show that there is a causal eect of previous use. However, ignoring unobserved heterogeneity and serially correlated shocks signicantly exaggerates the state dependence.
        KW  - marijuana
KW  - persistence
KW  - state dependence
KW  - Polya model
KW  - unobserved heterogeneity
KW  - dynamic ordered probit
KW  - simulation
KW  - NLSY
        ER  -