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Opioid Use, Mortality Risks and Crime: Insights from a Rapid Reduction in Heroin Supply

Timothy Moore1; Kevin Schnepel2

1 Purdue University and NBER · 2 Simon Fraser University

The Review of Economics and Statistics 2026

Abstract In 2001 a large and sustained supply shock halted a heroin epidemic in Australia. We use drug offenses to identify individual opioid users and examine how the shock affected their mortality risks and criminal activity over the next eight years. Initially, gains from fewer overdoses are offset by drug substitution and more crime, including homicides. Most adverse effects dissipate over time, whereas persistent mortality reductions save the lives of around one in 48 individuals in our sample. Our results demonstrate that reducing the supply of illicit opioids can lead to meaningful longer-term improvements, even when the short-term effects are ambiguous.

DOI
10.1162/rest_a_01453
Pages
1-19
Language
en
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