Opium Price Shocks and Prescription Opioids in the US

C. Deiana, Ludovica Giua and Nisticò, R.
Authors registered in the RePEc Author Service: Roberto Nisticò ()

Health, Econometrics and Data Group (HEDG) Working Papers from HEDG, c/o Department of Economics, University of York

Abstract: We investigate the effect of opium price shocks on the per capita dispensation of prescription opioids in the US. Using quarterly county-level data for 2003-2016, three main results emerge. First, reductions in opium prices significantly increase the quantity of opioids prescribed, and the more so in counties with higher ex-ante demand for analgesics, as captured by the incidence of mining sites. Second, the increase involves natural and semi-synthetic but not fully-synthetic opioids, suggesting that the effect is moderated by the amount of opium contained in the products. Third, the impact is larger prior to 2010, when overdose deaths were more related to the misuse of natural and semi-synthetic prescription opioids. Our additional firm-level estimates reveal that supply-side economic incentives have played a relevant role in the opioid epidemic. Advertising expenses of opioid producers increase following negative opium price shocks and so do their stock prices and profits.

Keywords: prescription opioids; drugs; opium price; overdose deaths; crime (search for similar items in EconPapers)
JEL-codes: I11 I12 I18 L65 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-hea
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Journal Article: Opium Price Shocks and Prescription Opioids in the USA* (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:yor:hectdg:20/23

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