Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/17980
Authors: 
Tauchmann, Harald
Year of Publication: 
2008
Series/Report no.: 
Economics Discussion Papers / Institut für Weltwirtschaft 2008-8
Abstract: 
In contrast to West-Germany, illicit drugs were virtually absent in the East-Germany until 1990. Yet, after the collapse of the former GDR, East-Germany was expected to encounter a sharp increase in the prevalence of substance abuse. By analyzing individual data, we find that East-Germany largely caught up with West-Germany?s ever-growing prevalence of illicit drugs within a single decade. We decompose the west-east difference in prevalence rates into an explained and an unexplained part using a modified Blinder-Oaxaca procedure. This decomposition suggests that the observed convergence is just weakly related to socioeconomic characteristics and therefore remains mainly unexplained. That is, West- and East-Germans seem to have become more alike per se. We conclude that both parts of the country have converged in terms of the culture of drug consumption.
Subjects: 
illicit drugs
west-east convergence
decomposition
JEL: 
I12
P23
P36
Creative Commons License: 
http://creativecommons.org/licenses/by-nc/2.0/de/deed.en
Document Type: 
Working Paper

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