IDEAS home Printed from https://ideas.repec.org/p/fip/fedbpr/2018_001.html

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. Alexander Cheung & Joseph Marchand & Patricia Mark, 2022. "Loss of Life and Labor Productivity: The Canadian Opioid Crisis," The ANNALS of the American Academy of Political and Social Science, , vol. 703(1), pages 303-323, September.
    2. 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.
    3. 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.
    4. Jeremy Greenwood & Nezih Guner & Karen A. Kopecky, 2022. "The Downward Spiral," NBER Working Papers 29764, National Bureau of Economic Research, Inc.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Lindenfeld, Zoe & Silver, Diana & Mauri, Amanda I. & Rothbart, Michah W., 2025. "Beyond social determinants: Fiscal determinants of overdose death in U.S counties, 2017–2020," Social Science & Medicine, Elsevier, vol. 364(C).
    10. Holzer, Harry J., 2023. "Can Workforce Development Help Us Reach Full Employment?," IZA Discussion Papers 16624, Institute of Labor Economics (IZA).
    11. 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.
    12. Chen, Chong & Huang, Qianqian & Shi, Chang & Yuan, Tao, 2024. "Opioid epidemic and corporate innovation," Journal of Corporate Finance, Elsevier, vol. 86(C).
    13. Karen A. Kopecky & Jeremy Greenwood & Nezih Guner, 2022. "Substance Abuse during the Pandemic: Implications for Labor-Force Participation," Working Papers 1335, Barcelona School of Economics.
    14. Alicia H. Munnell & Geoffrey Sanzenbacher & Alice Zulkarnain, 2020. "What Factors Explain the Decline in Widowed Women’s Poverty?," Demography, Springer;Population Association of America (PAA), vol. 57(5), pages 1881-1902, October.
    15. Holzer, Harry J., 2019. "The US Labor Market in 2050: Supply, Demand and Policies to Improve Outcomes," IZA Policy Papers 148, Institute of Labor Economics (IZA).
    16. Pinghui Wu, 2022. "Wage Inequality and the Rise in Labor Force Exit: The Case of US Prime-Age Men," Working Papers 22-16, Federal Reserve Bank of Boston.
    17. Patricia G Rice & Anthony J Venables, 2021. "The persistent consequences of adverse shocks: how the 1970s shaped UK regional inequality," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 37(1), pages 132-151.
    18. Grigoli, Francesco & Koczan, Zsoka & Topalova, Petia, 2020. "Automation and labor force participation in advanced economies: Macro and micro evidence," European Economic Review, Elsevier, vol. 126(C).
    19. 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.
    20. Bogdan Savych & David Neumark & Randall Lea, 2019. "Do Opioids Help Injured Workers Recover and Get Back to Work? The Impact of Opioid Prescriptions on Duration of Temporary Disability," Industrial Relations: A Journal of Economy and Society, Wiley Blackwell, vol. 58(4), pages 549-590, October.

    More about this item

    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.