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Business Cycles And Admissions To Substance Abuse Treatment

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  • Johanna Catherine Maclean
  • Brady P. Horn
  • Jonathan H. Cantor

Abstract

We study the effect of business cycles on admissions to specialty substance abuse treatment using administrative data between 1992 and 2015. We proxy business cycles with the state unemployment rate and apply a panel fixed‐effects model. While previous economic research has shown that substance abuse is counter‐cyclical, we observe no change in the total number of admissions across the business cycle. However, focusing on average effects misses important heterogeneity. In substance‐specific regressions we find statistically significant evidence that heroin‐related admissions are counter‐cyclical while stimulant‐related admissions are procyclical. Our findings add to the literature on business cycles and health. (JEL I1, J2)

Suggested Citation

  • Johanna Catherine Maclean & Brady P. Horn & Jonathan H. Cantor, 2020. "Business Cycles And Admissions To Substance Abuse Treatment," Contemporary Economic Policy, Western Economic Association International, vol. 38(1), pages 139-154, January.
    • Handle: RePEc:bla:coecpo:v:38:y:2020:i:1:p:139-154
    DOI: 10.1111/coep.12439
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    Cited by:

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    3. Shishir Shakya & Collin Hodges, 2023. "Must‐access prescription drug monitoring programs and retail opioid sales," Contemporary Economic Policy, Western Economic Association International, vol. 41(1), pages 146-165, January.
    4. Alice M. Ellyson & Jevay Grooms & Alberto Ortega, 2022. "Flipping the script: The effects of opioid prescription monitoring on specialty‐specific provider behavior," Health Economics, John Wiley & Sons, Ltd., vol. 31(2), pages 297-341, February.

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    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • J2 - Labor and Demographic Economics - - Demand and Supply of Labor

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