The Spillover Effects of Oxycontin's Introduction on Crime

Abstract

Since the late 1990s, the U.S. has experienced a substantial rise in drug overdose and overdose deaths due to the increased use of opioid drugs. This study estimates the effects of the opioid epidemic on crime relying for identification on geographic variation in the distribution of OxyContin, which in turn was driven by initial state drug prescription policies. Using the Uniform Crime Reports (UCR) data, I find that compared to states with stringent prescription policies, the rate of property and violent crimes in states exposed to OxyContin increased by 12% and 25%, respectively. Thus, the supply shock of opioids combined with loose policies on prescription drugs can create unintended and negative consequences in non-health issues, such as crime. This conclusion is supported by suggestive evidence on mechanisms of mental health conditions, alcohol abuse, and illegal drug markets.