The Effects of Oxycontin Reformulation on Homicide

Image by Bowen Tan, Ph.D. Candidate in Economics

Abstract

This study examines whether a supply-side intervention on prescription drugs, the introduction of an abuse-deterrent formulation of OxyContin, increased homicide victims. If so, could this effect be mitigated? First, leveraging cross-state variation in pre-reformulation OxyContin exposure, difference-in-difference estimates show that OxyContin reformulation led to an increase in homicide victims; this effect is strongest among those between 15 and 24, plausibly resulted from an increase in illicit market activities associated with the rise in post-reformulation demand for illicit opioids. The study then explores the potential of medical marijuana laws in mitigating these adverse effects, considering the analgesic properties of marijuana. Using pre-reformulation OxyContin exposure as an indicator to identify the specific demographic impacted and matches states with comparable exposure levels, difference-in-difference estimates show that medical marijuana legalization consistently led to a post-reformulation decrease in heroin use, heroin overdose deaths, and homicide victims in states where the exposure is the highest.

Bowen Tan
Bowen Tan
Ph.D. Candidate in Economics

Bowen Tan is a job market candidate in empirical health economics on the 2023 - 2024 job market.

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