Work

Opioid Epidemic and Local Fiscal Choices: Causal Evidence From Hydrocodone Rescheduling

Year: 2024

Type: article

Abstract: ABSTRACT The opioid epidemic has garnered attention from scholars across disciplines, yet its effect on local finances remains uncertain. We exploit an exogenous shock in hydrocodone supply, a commonly abused opioid, to estimate the causal effect of opioid exposure on local finances. Our results reveal larger budgets in affected communities, driven primarily by increased healthcare spending, along with higher intergovernmental aid and property taxes, while other revenue sources remain largely unchanged. These findings indicate that the epidemic burdens local budgets and suggest that addressing root causes, such as legal opioid supply, may not fully mitigate financial impacts.

Source: Public Budgeting &amp Finance

DOI: 10.1111/pbaf.12385

Authors: Felipe Lozano‐Rojas, Mikhail Ivonchyk

Institutions: University of Georgia, State University of New York, University at Albany, State University of New York

Language: English

Topic: Local Government Finance and Decentralization

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDGs: Good health and well-being, Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $3,300