We're Not in Dreamland Anymore: How Regional Opioid Use Rates Affect Industrial Composition

61 Pages Posted: 17 Nov 2021 Last revised: 21 Sep 2022

See all articles by W. Scott Langford

W. Scott Langford

School of Public Affairs - Arizona State University

Maryann P. Feldman

University of North Carolina at Chapel Hill; University of North Carolina (UNC) at Chapel Hill - Department of Public Policy; Kenan Flagler Business School

Date Written: September 23, 2021

Abstract

The opioid crisis has adversely affected nearly every aspect of life in some U.S. communities. Understanding how regional opioid use rates affect firm resources, and thus the industrial landscape, is vital to understanding long-term economic and fiscal effects. In this study, I estimate the causal effect of regional opioid use rates on firm resources, and industrial composition by using high-volume opioid dispensing pharmacies (pill mills) as an instrument. I find regional opioid use rates adversely affect firms in general, with differential effects across firm size, and industry. I also find adverse impacts on labor supply, and consider long-term economic and fiscal implications. Together, these findings link public health to long-term economic vitality and fiscal capacity.

Keywords: Industrial Structure, Health and Economic Development

JEL Classification: L16, I15, O12

Suggested Citation

Langford, W. Scott and Feldman, Maryann P., We're Not in Dreamland Anymore: How Regional Opioid Use Rates Affect Industrial Composition (September 23, 2021). Available at SSRN: https://ssrn.com/abstract=3924971 or http://dx.doi.org/10.2139/ssrn.3924971

W. Scott Langford (Contact Author)

School of Public Affairs - Arizona State University ( email )

411 N Central Ave #750
Phoenix, AZ 85004
United States
2527176016 (Phone)

HOME PAGE: http://www.scottlangford.us/

Maryann P. Feldman

University of North Carolina at Chapel Hill ( email )

CB 3435
University of North Carolina
Chapel Hill, NC 27599-3140
United States

HOME PAGE: http://maryannfeldman.web.unc.edu/

University of North Carolina (UNC) at Chapel Hill - Department of Public Policy ( email )

Abernathy Hall
Chapel Hill, NC 27599-3435
United States

Kenan Flagler Business School ( email )

Chapel Hill, NC
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
162
Abstract Views
693
Rank
350,077
PlumX Metrics