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Reuter’s recent research has largely focused on drug markets and drug policy. How do different kinds and
intensities of enforcement affect the demand and supply of illegal drugs and the ways in which such drugs are sold?
Recent co-authored articles in Socio Economic Planning Sciences and Contributions to Economic Analysis and
Policy, examine how drug markets may behave in counter-intuitive ways that deviate from the classic economic
predictions. His work also examines other interventions aimed at drug problems. A series of papers in Addiction
have assessed a variety of drug policy issues, such as the likely consequences of treatment on the size of the drug
addict population. In general, Reuter finds that while drug treatment lowers drug addiction at the individual level,
and can be justified as a social program to promote health, it can not be justified on a pure cost effectiveness
basis. However, the only alternative policy, intensified policing or sanctions, appear to neither reduce drug
prevalence nor drug-related harm. This suggests no inexpensive solution to reducing the current rate of drug
addition. In his 2006 American Journal of Public Health article with Harold Pollack, he examined whether the
work requirements of welfare reform left a population of welfare recipients that had a higher propensity of drug
abuse. A primary concern of welfare reform was that mothers with special needs, especially drug addition, would be
insensitive to the work incentives put into place by welfare reform. The paper demonstrated that, contrary to
predictions in 1996, when welfare reform was implemented, there has been a decrease in drug abuse in the welfare
population. This decrease appears to reflecting a general decline in low income population so that there is no
evidence of differential exit from welfare by a recipient’s degree of drug dependency.
Reuter served as prinicpal investigator (P.I.) for a 2005-2006 National Institute of Justice project that examined new approaches to
estimating the crime reduction effects of incarceration. One element is an analysis of the effects of 2001 changes
in sentencing rules in Maryland.
During the next five years, Reuter plans both to continue his long line of research on the performance of illegal
markets and to expand into a new population sciences area. The population of drug addicts in the U.S. has been
aging, with important consequences both for crime (positive) and health (negative). He is collaborating with
Harold Pollack (U. Chicago) on a project to examine the likely path of these changes and the effects of various
plausible policy interventions. This involves modeling with a variety of large scale data bases, such as the
National Survey on Drug Use and Health, Treatment Episode Data System, and Arrestee Drug Abuse Monitoring the
impact of drug addition at a point in time and over time on health related outcomes.
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