Persistent high ambition and substance abuse: a rationalization of a vicious circle

Authors

Amnon Levy, University of WollongongFollow
João R. Faria, Nottingham Trent UniversityFollow

RIS ID

22770

Publication Details

Levy, A. & Faria, J. R. (2008). Persistent high ambition and substance abuse: a rationalization of a vicious circle. Journal of Economics, 94 (3), 261-274.

Abstract

While the current use of some mind-altering substances alleviates current level of depression, it facilitates future depression. Our analysis incorporates this intertemporal tradeoff and shows that the stationary status of a consistently overly ambitious sophisticated user is improved by impatience, and that this improvement is amplified by the ratio of the instantaneous depression-relief effect to the status-degradation effect of the mind-altering substance. The analysis also shows that the existence of a supportive personal community leads to permanent cyclical use of mind-altering substances.