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From pain patient to junkie: An economic theory of painkiller consumption and its impact on wellbeing and longevity

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  • Strulik, Holger
Abstract
In this paper, I propose a life cycle model of painkiller consumption that combines the theory of health deficit accumulation with the theory of addiction. Chronic pain is conceptualized as a persistent negative shock to lifetime utility that can be treated by pain relief medication. Individuals treated with opioid pain relievers (OPR) develop addiction, which increases their demand for opioids and reduces their welfare and life expectancy through side effects and potential overdose. I calibrate the model for a benchmark American and investigate the comparative dynamics of alternative drug characteristics, pain intensities, and ages of onsets of pain and their implications for welfare and life expectancy. Computational experiments are used to identify fully rational and imperfectly rational addiction behavior. Fully rational addicts quickly quit OPR use when new information about their addictive potential arrives. Imperfectly rational addicts further develop their addiction and switch to illicit opioid use. Likewise, a discontinued prescription helps fully rational addicts to quit quickly while it induces imperfectly rational individuals to take up heroin. I also discuss treatment of OPR addiction and the use of opioids in palliative care.

Suggested Citation

  • Strulik, Holger, 2019. "From pain patient to junkie: An economic theory of painkiller consumption and its impact on wellbeing and longevity," University of Göttingen Working Papers in Economics 359, University of Goettingen, Department of Economics, revised 2019.
    • Handle: RePEc:zbw:cegedp:359
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    References listed on IDEAS

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    Cited by:

    1. Jeremy Greenwood & Nezih Guner & Karen A. Kopecky, 2022. "The Downward Spiral," NBER Working Papers 29764, National Bureau of Economic Research, Inc.
    2. Schünemann, Johannes & Strulik, Holger & Trimborn, Timo, 2023. "Anticipation of deteriorating health and information avoidance," Journal of Health Economics, Elsevier, vol. 89(C).
    3. Strulik, Holger, 2023. "Hooked on weight control: An economic theory of anorexia nervosa and its impact on health and longevity," Journal of Health Economics, Elsevier, vol. 88(C).
    4. Simone Balestra & Helge Liebert & Nicole Maestas & Tisamarie B. Sherry, 2021. "Behavioral Responses to Supply-Side Drug Policy During the Opioid Epidemic," NBER Working Papers 29596, National Bureau of Economic Research, Inc.
    5. Grossmann, Volker & Strulik, Holger, 2021. "Illicit drugs and the decline of the middle class," Journal of Economic Behavior & Organization, Elsevier, vol. 183(C), pages 718-743.
    6. Strulik, Holger, 2022. "A health economic theory of occupational choice, aging, and longevity," Journal of Health Economics, Elsevier, vol. 82(C).
    7. Strulik, Holger, 2022. "Medical progress and life cycle choices," The Journal of the Economics of Ageing, Elsevier, vol. 23(C).
    8. Strulik, Holger, 2020. "Opioid epidemics," Economics & Human Biology, Elsevier, vol. 37(C).

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    More about this item

    Keywords

    pain; pain relief; addiction; opioid epidemic; health deficits; life expectancy; illicit drugs;
    All these keywords.

    JEL classification:

    • D15 - Microeconomics - - Household Behavior - - - Intertemporal Household Choice; Life Cycle Models and Saving
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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