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Supply-Side Drug Policy, Polydrug Use, and the Economic Effects of Withdrawal Symptoms

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  • Ahammer, Alexander

    (University of Linz)

  • Packham, Analisa

    (Vanderbilt University)

Abstract

Despite the fact that 30 percent of opioid overdoses also involve a benzodiazepine, there is little policy guidance on how to curb concurrent misuse and even less evidence on how changes to co-prescribing practices can affect patients' economic trajectories. In 2012, Austria restricted access to flunitrazepam, one of the most potent, and most heavily misused, benzodiazepines. We use linked individual-level data to identify opioid users and estimate the reform's impact on their health and labor market outcomes relative to a randomly selected comparison group of non-opioid users. Estimates indicate a 12.7 percent drop in employment, a 13.1 percent increase in unemployment insurance claims, and a 26.5 percent increase in overall healthcare expenditures. We provide suggestive evidence that these effects are due to incapacitating withdrawal symptoms, rather than substitution to other drugs, including heroin or alcohol.

Suggested Citation

  • Ahammer, Alexander & Packham, Analisa, 2024. "Supply-Side Drug Policy, Polydrug Use, and the Economic Effects of Withdrawal Symptoms," IZA Discussion Papers 17192, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp17192
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    References listed on IDEAS

    as
    1. Sarah Hamersma & Johanna Catherine Maclean, 2018. "Insurance Expansions and Children’s Use of Substance Use Disorder Treatment," NBER Working Papers 24499, National Bureau of Economic Research, Inc.
    2. Anca M. Grecu & Dhaval M. Dave & Henry Saffer, 2019. "Mandatory Access Prescription Drug Monitoring Programs and Prescription Drug Abuse," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 38(1), pages 181-209, January.
    3. Gupta, Sumedha & Nguyen, Thuy & Freeman, Patricia R. & Simon, Kosali, 2023. "Competitive effects of federal and state opioid restrictions: Evidence from the controlled substance laws," Journal of Health Economics, Elsevier, vol. 91(C).
    4. Thomas C. Buchmueller & Colleen Carey, 2018. "The Effect of Prescription Drug Monitoring Programs on Opioid Utilization in Medicare," American Economic Journal: Economic Policy, American Economic Association, vol. 10(1), pages 77-112, February.
    5. Eric Barrette & Leemore Dafny & Karen Shen, 2023. "Do Policies to Increase Access to Treatment for Opioid Use Disorder Work?," American Journal of Health Economics, University of Chicago Press, vol. 9(3), pages 297-330.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    opioids; substance use disorder treatment; benzodiazepines;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy

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