The War on Drugs: Estimating the Effect of Prescription Drug Supply Side Interventions
This paper estimates the effect of supply side interventions on prescription drug availability, abuse, and crime. I employ novel data and exploit the timing and geographic location of a crackdown on legal suppliers of pharmaceuticals in Florida, the epicenter of America's prescription drug abuse epidemic during the 2000s. Between 2010 12, nearly 600 pain clinics were shutdown. In turn, average oxycodone quantities decreased 59% oxycodone street prices increased 238% opioid abuse treatment admissions increased 33% and approximately 2,000 oxycodone related deaths were averted. Spillovers from substitution to illegal drugs were modest, with approximately 139 new heroin related deaths and no increase in crime.