American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
Disrupting Drug Markets: The Effects of Crackdowns on Rogue Opioid Suppliers
American Economic Journal: Economic Policy
(pp. 165–91)
Abstract
This paper estimates the impact of doctor crackdowns on the quantity demanded of prescription opioids, across-market substitution, and across-product substitution. Exploiting plausibly exogenous variation in the timing and location of administrative actions, I find cracking down on a single doctor decreases county-level opioid dispensing by 10 percent. This decline persists across space and grows over time. Additionally, significant heroin substitution occurs, yet overall overdose mortality decreases. These results highlight a critical tradeoff policymakers should consider with targeted crackdowns: Reductions in the flow of new users must be balanced against the harm that arises when existing users substitute to more dangerous drugs.Citation
Soliman, Adam. 2025. "Disrupting Drug Markets: The Effects of Crackdowns on Rogue Opioid Suppliers." American Economic Journal: Economic Policy 17 (4): 165–91. DOI: 10.1257/pol.20230640Additional Materials
JEL Classification
- I11 Analysis of Health Care Markets
- I12 Health Behavior
- I18 Health: Government Policy; Regulation; Public Health
- K42 Illegal Behavior and the Enforcement of Law