IDEAS home Printed from https://ideas.repec.org/p/zbw/cegedp/371.html
   My bibliography  Save this paper

Opioid epidemics

Author

Listed:
  • Strulik, Holger

Abstract

In this paper, I propose an economic theory that addresses the epidemic character of opioid epidemics. I consider a community in which individuals are heterogenous with respect to the experience of chronic pain and susceptibility to addiction and live through two periods. In the first period they consider whether to treat pain with opioid pain relievers (OPRs). In the second period they consider whether to continue non-medical opioid use to feed an addiction. Non-medical opioid use is subject to social disapproval, which dependents negatively on the share of opioid addicts in the community. An opioid epidemic is conceptualized as the transition from an equilibrium at which opioid use is low and addiction is highly stigmatized to an equilibrium at which opioid use is prevalent and social disapproval is low. I show how such a transition is initiated by the wrong belief that OPRs are not very addictive. Under certain conditions there exists an opioid trap such that the community persists at the equilibrium of high opioid use after the wrong belief is corrected. Refinements of the basic model consider the recreational use of prescription OPRs and an interaction between income, pain, and addiction.

Suggested Citation

  • Strulik, Holger, 2019. "Opioid epidemics," University of Göttingen Working Papers in Economics 371, University of Goettingen, Department of Economics.
    • Handle: RePEc:zbw:cegedp:371
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/196917/1/1666315060.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Deiana, Claudio & Giua, Ludovica, 2018. "The US Opidemic: Prescription Opioids, Labour Market Conditions and Crime," MPRA Paper 85712, University Library of Munich, Germany.
    2. Anne Case & Angus Deaton, 2017. "Mortality and Morbidity in the 21st Century," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(1 (Spring), pages 397-476.
    3. David G. Blanchflower & Andrew J. Oswald, 2019. "Unhappiness and Pain in Modern America: A Review Essay, and Further Evidence, on Carol Graham's Happiness for All?," Journal of Economic Literature, American Economic Association, vol. 57(2), pages 385-402, June.
    4. Poutvaara, Panu & Siemers, Lars-H. R., 2008. "Smoking and social interaction," Journal of Health Economics, Elsevier, vol. 27(6), pages 1503-1515, December.
    5. Charles F. Manski, 2000. "Economic Analysis of Social Interactions," Journal of Economic Perspectives, American Economic Association, vol. 14(3), pages 115-136, Summer.
    6. Strulik, Holger, 2021. "From pain patient to junkie: An economic theory of painkiller consumption and its impact on wellbeing and longevity," Journal of Health Economics, Elsevier, vol. 76(C).
    7. Grossmann, Volker & Strulik, Holger, 2021. "Illicit drugs and the decline of the middle class," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 718-743.
    8. William N. Evans & Ethan M. J. Lieber & Patrick Power, 2019. "How the Reformulation of OxyContin Ignited the Heroin Epidemic," The Review of Economics and Statistics, MIT Press, vol. 101(1), pages 1-15, March.
    9. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    10. Becker, Gary S, 1992. "Habits, Addictions, and Traditions," Kyklos, Wiley Blackwell, vol. 45(3), pages 327-345.
    11. Borges, G. & Cherpitel, C.J. & Orozco, R. & Zemore, S.E. & Wallisch, L. & Medina-Mora, M.-E. & Breslau, J., 2016. "Substance use and cumulative exposure to American society: Findings from both sides of the US-Mexico border region," American Journal of Public Health, American Public Health Association, vol. 106(1), pages 119-127.
    12. Strulik, Holger, 2018. "Smoking kills: An economic theory of addiction, health deficit accumulation, and longevity," Journal of Health Economics, Elsevier, vol. 62(C), pages 1-12.
    13. Christopher J. Ruhm, 2018. "Deaths of Despair or Drug Problems?," NBER Working Papers 24188, National Bureau of Economic Research, Inc.
    14. David M. Cutler & Edward L. Glaeser, 2010. "Social Interactions and Smoking," NBER Chapters, in: Research Findings in the Economics of Aging, pages 123-141, National Bureau of Economic Research, Inc.
    15. Bisin, Alberto & Verdier, Thierry, 2001. "The Economics of Cultural Transmission and the Dynamics of Preferences," Journal of Economic Theory, Elsevier, vol. 97(2), pages 298-319, April.
    16. Van Zee, A., 2009. "The promotion and marketing of oxycontin: Commercial triumph, public health tragedy," American Journal of Public Health, American Public Health Association, vol. 99(2), pages 221-227.
    17. Julian Reif, 2019. "A Model Of Addiction And Social Interactions," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 759-773, April.
    18. Gary S. Becker, 1992. "Habits, Addictions, and Traditions," Kyklos, Wiley Blackwell, vol. 45(3), pages 327-345, August.
    19. Carpenter, Christopher S. & McClellan, Chandler B. & Rees, Daniel I., 2017. "Economic conditions, illicit drug use, and substance use disorders in the United States," Journal of Health Economics, Elsevier, vol. 52(C), pages 63-73.
    20. Julian Reif, 2018. "A Model of Addiction and Social Interactions," NBER Working Papers 24842, National Bureau of Economic Research, Inc.
    21. Janet Currie & Jonas Y. Jin & Molly Schnell, 2018. "U.S. Employment and Opioids: Is There a Connection?," NBER Working Papers 24440, National Bureau of Economic Research, Inc.
    22. Jones, Andrew M., 1994. "Health, addiction, social interaction and the decision to quit smoking," Journal of Health Economics, Elsevier, vol. 13(1), pages 93-110, March.
    23. Strulik, Holger, 2014. "A mass phenomenon: The social evolution of obesity," Journal of Health Economics, Elsevier, vol. 33(C), pages 113-125.
    24. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    25. Alan B. Krueger, 2017. "Where Have All the Workers Gone? An Inquiry into the Decline of the U.S. Labor Force Participation Rate," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 48(2 (Fall)), pages 1-87.
    26. Gruenewald, P.J. & Ponicki, W.R. & Remer, L.G. & Waller, L.A. & Zhu, L. & Gorman, D.M., 2013. "Mapping the spread of methamphetamine abuse in California from 1995 to 2008," American Journal of Public Health, American Public Health Association, vol. 103(7), pages 1262-1270.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Strulik, Holger, 2021. "From pain patient to junkie: An economic theory of painkiller consumption and its impact on wellbeing and longevity," Journal of Health Economics, Elsevier, vol. 76(C).
    2. Deiana, Claudio & Giua, Ludovica & Nistico, Roberto, 2019. "The Economics behind the Epidemic: Afghan Opium Price and Prescription Opioids in the US," IZA Discussion Papers 12872, Institute of Labor Economics (IZA).
    3. Deiana, C. & Giua, L. & Nisticò, R., 2020. "Opium Price Shocks and Prescription Opioids in the US," Health, Econometrics and Data Group (HEDG) Working Papers 20/23, HEDG, c/o Department of Economics, University of York.
    4. Aliprantis, Dionissi & Fee, Kyle & Schweitzer, Mark E., 2023. "Opioids and the labor market," Labour Economics, Elsevier, vol. 85(C).
    5. Grossmann, Volker & Strulik, Holger, 2021. "Illicit drugs and the decline of the middle class," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 718-743.
    6. Daniele, Gianmarco & Le Moglie, Marco & Masera, Federico, 2023. "Pains, guns and moves: The effect of the U.S. opioid epidemic on Mexican migration," Journal of Development Economics, Elsevier, vol. 160(C).
    7. David Aristei & Luca Pieroni, 2009. "Addiction, social interactions and gender differences in cigarette consumption," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 245-272, August.
    8. Carolina Arteaga Cabrales & Victoria Barone, 2021. "The Opioid Epidemic: Causes and Consequences," Working Papers tecipa-698, University of Toronto, Department of Economics.
    9. Julian Reif, 2019. "A Model Of Addiction And Social Interactions," Economic Inquiry, Western Economic Association International, vol. 57(2), pages 759-773, April.
    10. Ruhm, Christopher J., 2019. "Drivers of the fatal drug epidemic," Journal of Health Economics, Elsevier, vol. 64(C), pages 25-42.
    11. Strulik, Holger, 2023. "Hooked on weight control: An economic theory of anorexia nervosa and its impact on health and longevity," Journal of Health Economics, Elsevier, vol. 88(C).
    12. Bhashkar Mazumder, 2023. "The Effects of Prescription Drug Monitoring Programs on Labor Market Activity and Credit Outcomes," Working Paper Series WP 2023-13, Federal Reserve Bank of Chicago.
    13. Simone Balestra & Helge Liebert & Nicole Maestas & Tisamarie B. Sherry, 2021. "Behavioral Responses to Supply-Side Drug Policy During the Opioid Epidemic," NBER Working Papers 29596, National Bureau of Economic Research, Inc.
    14. Boslett, Andrew & Hill, Elaine, 2022. "Mortality during resource booms and busts," Journal of Environmental Economics and Management, Elsevier, vol. 115(C).
    15. McGranahan, David & Parker, Timothy, 2021. "The Opioid Epidemic: A Geography in Two Phases," Economic Research Report 327197, United States Department of Agriculture, Economic Research Service.
    16. Kerwin Kofi Charles & Erik Hurst & Mariel Schwartz, 2019. "The Transformation of Manufacturing and the Decline in US Employment," NBER Macroeconomics Annual, University of Chicago Press, vol. 33(1), pages 307-372.
    17. Janet Currie & Hannes Schwandt, 2020. "The Opioid Epidemic Was Not Primarily Caused by Economic Distress But by Other Factors that Can be More Readily Addressed," Working Papers 2020-25, Princeton University. Economics Department..
    18. Blanchflower, David G., 2020. "Unhappiness and age," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 461-488.
    19. Glei, Dana A. & Stokes, Andrew & Weinstein, Maxine, 2020. "Changes in mental health, pain, and drug misuse since the mid-1990s: Is there a link?," Social Science & Medicine, Elsevier, vol. 246(C).
    20. ÖZGÜR, Onur & BISIN, Alberto, 2011. "Dynamic Linear Economies with Social Interactions," Cahiers de recherche 04-2011, Centre interuniversitaire de recherche en économie quantitative, CIREQ.

    More about this item

    Keywords

    addiction; pain; opioids; stigma; social interaction; information constraints;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I14 - Health, Education, and Welfare - - Health - - - Health and Inequality

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:cegedp:371. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/cdgoede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.