Citation

Janssen A, Zhang X. Am. Econ. Rev. 2023; 113(1): 1-33.

Copyright

(Copyright © 2023, American Economic Association)

DOI

10.1257/aer.20210357

PMID

unavailable

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 percent more opioids and 60.5 percent more OxyContin. After an independent pharmacy becomes a chain pharmacy, opioid dispensing decreases. Using the OxyContin reformulation, which reduced nonmedical demand but not the legitimate medical demand, we show that at least one-third of the difference in the amount of OxyContin dispensed can be attributed to nonmedical demand. We show that differences in competitive pressure and whether pharmacists own the pharmacy drive our estimates.

Language: en

Keywords

Capital and Ownership Structure; e-Commerce; Financial Risk and Risk Management; Financing Policy; Goodwill, Health Behavior, Firm Organization and Market Structure, Retail and Wholesale Trade; Value of Firms