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

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