Publication Type

Journal Article

Version

submittedVersion

Publication Date

1-2023

Abstract

This study investigates the role of retail pharmacy ownership in the opioid epidemic. Using data of prescription opioid orders, we show that compared with chain pharmacies, independent pharmacies dispense 39.1% more opioids and 60.5% more OxyContin. After an independent pharmacy becomes a chain pharmacy, opioid dispensing decreases. Using the OxyContin reformulation, which reduced non-medical demand but not the legitimate medical demand, we show that at least a third of the difference in the amount of OxyContin dispensed can be attributed to non-medical demand. We show that differences in competitive pressure and whether pharmacists own the pharmacy drive our estimates.

Keywords

pharmacy, ownership, prescription opioids, drug diversion

Discipline

Chemicals and Drugs | Health Economics | Industrial Organization

Research Areas

Applied Microeconomics

Publication

American Economic Review

Volume

113

Issue

1

First Page

1

Last Page

33

ISSN

0002-8282

Identifier

10.1257/aer.20210357

Publisher

American Economic Association

Copyright Owner and License

Authors

Additional URL

https://doi.org/10.1257/aer.20210357

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