Are Spatial Variables Important? The Case of Markets for Multiple Drugs in British Bengal

Abstract

Results from the preliminary analysis of a dataset consisting of population-level statistics for opium and three forms of marijuana for districts in the province of Bengal in British India for the period 1908–1928 are presented. The findings shed light on the importance of geographic phenomena for the economic analysis of drug consumption, and on the economic characteristics of opium and marijuana consumption. Exploratory spatial data analyses reveal spatial clustering for a number of variables that are important for understanding drug consumption. In addition, there is evidence of substitutability between marijuana and opium, and within the three different forms of marijuana. Finally, the consumption of all four products is responsive to changes in their prices.