Optimal dynamic allocation of treatment and enforcement in illicit drug control

There has been considerable debate about what share of drug control resourc es should be allocated to treatment vs. enforcement. Most of the debate has presumed that there is one answer to that question, bur it seems plausible that the mix of interventions should vary as the size of the problem chang es. We formulate the choice between treatment and enforcement as an optimal control problem and reach the following conclusions. If initiation into dr ug use is an increasing function of the current number of users and control begins early, then it is optimal to use very Large amounts of both enforce ment and treatment to cut short the epidemic. Otherwise the optimal policy is not to stop the growth of the epidemic, but rather to moderate it. Initi ally this should be done primarily with enforcement. Over time, enforcement spending should increase, but not nearly so fast as treatment spending. He nce. treatment should receive a larger share of control resources when a dr ug problem is mature than when it is first growing. If initiation rates sub sequently decline, enforcement's budget share should drop further in the en suing declining stage of the epidemic.