The intended and unintended effects of opioid policies on prescription opioids and crime

In response to the opioid crisis, US states have implemented policies to reduce the dispensing of opioids and curb drug mortality. Exploiting a long panel of county-level data, we analyse the combination of demand- and supply-side state opioid policies and evaluate their effect on opioids per capita dispensed and their unintended fallouts on drug-related crime. We demonstrate that only laws targeting the supply for opioids reduce the volume of prescribed drugs, while demand-side policies are less effective. We also emphasize that within supply-side state regulations, Pain Management Clinics Laws are the most successful in reducing the dispensation of prescription opioids. Remarkably, the drop in opioids distributed due to supply-side regulations is accompanied by negative externalities in the local market for illicit drugs.