IDEAS home Printed from https://ideas.repec.org/p/fip/fedbpr/2018_001.html
   My bibliography  Save this paper

The fiscal impact of the opioid epidemic in the New England states

Author

Listed:
  • Riley Sullivan

Abstract

The rise in the abuse of?and addiction to?opioids and the rapid increase in the number of fatal overdoses in recent years have made the opioid epidemic a priority for local, state, and federal policymakers. Understanding the epidemic?s direct fiscal impact is key to acknowledging its scope and magnitude. While opioid abuse has many direct and indirect fiscal costs, few studies quantify them. This report assembles available data on the impact of opioid epidemic on criminal justice, treatment, and related health expenditures in the New England states. The research finds that state governments in the region spend a higher percentage on total opioid-related costs and more per capita than the national averages. Across the region, treating opioid-use disorder?on both an emergency and a long-term basis?accounts for the majority of the costs. Estimates for medical treatment expenditures associated with opioid abuse reach as high as $340 million annually in Massachusetts alone. While providing new insight the author acknowledges that the costs considered in this policy report are incomplete. It?s plausible that the opioid epidemic?s impact on state revenues is also significant and could affect regional fiscal health. For example, individuals incarcerated for drug crimes or in residential treatment programs are not earning wages. Evidence also suggests that non-institutionalized individuals abusing opioids are more likely out of work than employed, likewise resulting in lost revenue (Krueger 2017). The author plans to conduct further research on opioid abuse?s impact on employment and labor force participation, which should contribute to a fuller understanding of the epidemic?s fiscal cost to the region. However, beyond the fiscal cost is the toll opioid abuse has taken on individuals, families, and communities. The costs analyzed in this report are just a small part of the greater damage inflicted across the region and the country.

Suggested Citation

  • Riley Sullivan, 2018. "The fiscal impact of the opioid epidemic in the New England states," New England Public Policy Center Policy Reports 18-1, Federal Reserve Bank of Boston.
  • Handle: RePEc:fip:fedbpr:2018_001
    as

    Download full text from publisher

    File URL: https://www.bostonfed.org/publications/new-england-public-policy-center-policy-report/2018/the-fiscal-impact-of-the-opioid-epidemic-in-the-new-england-states.aspx
    File Function: Summary
    Download Restriction: no

    File URL: https://www.bostonfed.org/-/media/Documents/Workingpapers/PDF/2018/neppcpr1801.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Robert Bifulco & Iuliia Shybalkina, 2022. "Fiscal Impacts of the Opioid Crisis on State and Local Governments," The ANNALS of the American Academy of Political and Social Science, , vol. 703(1), pages 324-349, September.

    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. Michaela Vine & Colleen Staatz & Crystal Blyler & Jillian Berk, "undated". "The Role of the Workforce System in Addressing the Opioid Crisis: A Review of the Literature," Mathematica Policy Research Reports a01ba8436deb4800b7f49b7e9, Mathematica Policy Research.
    2. Danny Yagan, 2019. "Employment Hysteresis from the Great Recession," Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 2505-2558.
    3. Mr. Francesco Grigoli & Zsoka Koczan & Petia Topalova, 2018. "Drivers of Labor Force Participation in Advanced Economies: Macro and Micro Evidence," IMF Working Papers 2018/150, International Monetary Fund.
    4. Ilaria Natali & Mathias Dewatripont & Victor Ginsburgh & Michel Goldman & Patrick Legros, 2023. "Prescription opioids and economic hardship in France," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 24(9), pages 1473-1504, December.
    5. Jeremy Greenwood & Nezih Guner & Karen A. Kopecky, 2022. "The Downward Spiral," NBER Working Papers 29764, National Bureau of Economic Research, Inc.
    6. Amy Finkelstein & Matthew Gentzkow & Dean Li & Heidi L. Williams, 2022. "What Drives Risky Prescription Opioid Use? Evidence from Migration," NBER Working Papers 30471, National Bureau of Economic Research, Inc.
    7. van Dijk, Mathijs A. & van Dalen, Hendrik P. & Hyde, Martin, 2020. "Who bears the brunt? The impact of banking crises on younger and older workers," The Journal of the Economics of Ageing, Elsevier, vol. 17(C).
    8. 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.
    9. Brian Bell & Nicholas Bloom & Jack Blundell, 2021. "This time is not so different: income dynamics during the Covid-19 recession," POID Working Papers 012, Centre for Economic Performance, LSE.
    10. Richard K. Crump & Stefano Eusepi & Marc Giannoni & Aysegul Sahin, 2019. "A Unified Approach to Measuring u," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 50(1 (Spring), pages 143-238.
    11. Jonathan Willis & Didem Tuzemen, 2017. "How Has Job Polarization Contributed to the Increase in Non-Participation of Prime-Age Men?," 2017 Meeting Papers 1516, Society for Economic Dynamics.
    12. Holzer, Harry J., 2023. "Can Workforce Development Help Us Reach Full Employment?," IZA Discussion Papers 16624, Institute of Labor Economics (IZA).
    13. Mezza, Alvaro & Buchinsky, Moshe, 2021. "Illegal drugs, education, and labor market outcomes," Journal of Econometrics, Elsevier, vol. 223(2), pages 454-484.
    14. Benjamin Austin & Edward Glaeser & Lawrence Summers, 2018. "Jobs for the Heartland: Place-Based Policies in 21st-Century America," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 49(1 (Spring), pages 151-255.
    15. 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.
    16. Erica L. Groshen & Harry J. Holzer, 2021. "Labor Market Trends and Outcomes: What Has Changed since the Great Recession?," The ANNALS of the American Academy of Political and Social Science, , vol. 695(1), pages 49-69, May.
    17. Ernest Kay Bakpa & Hu Xuhua & Abigail Konadu Aboagye, 2021. "Ghana’s economic growth: Directing our focus on the contributing influences of innovation activities and trade," Growth and Change, Wiley Blackwell, vol. 52(4), pages 2213-2237, December.
    18. René Böheim & Thomas Horvath & Thomas Leoni & Martin Spielauer, 2023. "The Impact of Health and Education on Labor Force Participation in Aging Societies: Projections for the United States and Germany from Dynamic Microsimulations," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 42(3), pages 1-35, June.
    19. Ananth Seshadri, 2018. "A Meta-Analysis of the Decline in the Labor Force Participation Rate," Working Papers wp381, University of Michigan, Michigan Retirement Research Center.
    20. 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).

    More about this item

    Keywords

    fiscal; New England; opioids;
    All these keywords.

    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:fip:fedbpr:2018_001. 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: Catherine Spozio (email available below). General contact details of provider: https://edirc.repec.org/data/frbbous.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.