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Opioid Use, Health and Crime: Insights from a Rapid Reduction in Heroin Supply

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  • Timothy J. Moore
  • Kevin T. Schnepel

Abstract

In 2001, a large and sustained supply shock halted a heroin epidemic in Australia. We use outpatient drug treatment records to identify individuals who accounted for nearly half of opioid overdoses prior to the shock, and examine how the reduced supply of heroin affected their health and criminal activity over the next eight years. Initially, the gains from fewer overdose deaths are offset by individuals substituting to other drugs and committing more violent crime, including homicides. Most adverse effects dissipate after one year, and are followed by further decreases in deaths and a large reduction in property crime. Our results demonstrate that reducing the supply of illicit opioids can lead to meaningful longer-term improvements, even when the short-term effects are ambiguous.

Suggested Citation

  • Timothy J. Moore & Kevin T. Schnepel, 2021. "Opioid Use, Health and Crime: Insights from a Rapid Reduction in Heroin Supply," NBER Working Papers 28848, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28848
    Note: EH LE PE
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    Cited by:

    1. d'Este, Rocco, 2022. "Scientific Advancements in Illegal Drugs Production and Institutional Responses: New Psychoactive Substances, Self-Harm, and Violence inside Prisons," IZA Discussion Papers 15248, Institute of Labor Economics (IZA).
    2. Johanna Catherine Maclean & Justine Mallatt & Christopher J. Ruhm & Kosali Simon, 2022. "The Opioid Crisis, Health, Healthcare, and Crime: A Review of Quasi-Experimental Economic Studies," The ANNALS of the American Academy of Political and Social Science, , vol. 703(1), pages 15-49, September.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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