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Opioid epidemics

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  • 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," Center for European, Governance and Economic Development Research Discussion Papers 371, University of Goettingen, Department of Economics.
  • Handle: RePEc:zbw:cegedp:371
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    File URL: https://www.econstor.eu/bitstream/10419/196917/1/1666315060.pdf
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    1. repec:aea:jeclit:v:57:y:2019:i:2:p:385-402 is not listed on IDEAS
    2. Strulik, Holger, 2019. "From pain patient to junkie: An economic theory of painkiller consumption and its impact on wellbeing and longevity," Center for European, Governance and Economic Development Research Discussion Papers 359, University of Goettingen, Department of Economics.
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    5. Deiana, Claudio & Giua, Ludovica, 2018. "The US Opidemic: Prescription Opioids, Labour Market Conditions and Crime," MPRA Paper 85712, University Library of Munich, Germany.
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    More about this item

    Keywords

    addiction; pain; opioids; stigma; social interaction; information constraints;

    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

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