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Policy-Induced Substitution to Illicit Drugs and Implications for Law Enforcement Activity

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  • Justine Mallatt

Abstract

US states have implemented many policies to lessen the severity of the opioid crisis. This study investigates prescription drug monitoring programs, the reformulation of OxyContin, and Pill Mill laws on illicit drug possession and sellers. I perform difference-in-differences analyses to study policy-induced substitution to heroin and illicit opioids as measured through rates of heroin and diverted opioid possession and dealers. I find evidence that state policies cause increases in heroin possession and dealers, and that these effects are similar in magnitude to effects spurred by the reformulation of OxyContin.

Suggested Citation

  • Justine Mallatt, 2022. "Policy-Induced Substitution to Illicit Drugs and Implications for Law Enforcement Activity," American Journal of Health Economics, University of Chicago Press, vol. 8(1), pages 30-64.
    • Handle: RePEc:ucp:amjhec:doi:10.1086/716462
    DOI: 10.1086/716462
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    Cited by:

    1. Rosanna Smart & David Powell & Rosalie Liccardo Pacula & Evan D. Peet & Rahi Abouk & Corey S. Davis, 2023. "Investigating the Complexity of Naloxone Distribution: Which Policies Matter for Pharmacies and Potential Recipients," NBER Working Papers 31142, National Bureau of Economic Research, Inc.
    2. Kaestner, Robert & Ziedan, Engy, 2023. "Effects of prescription opioids on employment, earnings, marriage, disability and mortality: Evidence from state opioid control policies," Labour Economics, Elsevier, vol. 82(C).
    3. Shishir Shakya & Jane E. Ruseski, 2023. "The effect of Prescription Drug Monitoring Programs on county‐level opioid prescribing practices and spillovers," Contemporary Economic Policy, Western Economic Association International, vol. 41(3), pages 435-454, July.

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