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Provide and demand for fentanyl

by Index Investing News
December 1, 2024
in Economy
Reading Time: 2 mins read
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The FT has an article with the next headline and subhead:

Fentanyl deaths are falling. What’s behind the decline?

The proof factors to adjustments within the drug provide

It’s a wonderful article, however there’s actually no proof to help the subhead (which is often written by the editor, not the journalist.)

The article does present proof that there was a latest decline within the amount of medication seized, however that would replicate both decrease provide or decrease demand.  To keep away from “reasoning from a amount change”, it’s essential to have a look at contemporaneous adjustments in each worth and amount.  Is a rising worth of fentanyl deterring customers, or is much less fentanyl demand leading to decrease costs?

One other article means that not less than in Minnesota it is perhaps the latter:

In latest months, the worth of shopping for fentanyl on the road within the Twin Cities metro fell to $1-$2 a tablet, a longtime narcotics investigator for the Hennepin County Sheriff’s Workplace confirmed.

That’s down from a roughly $20 worth level a few years in the past, Hennepin County Sheriff’s Main Rick Palaia mentioned, including that’s nonetheless about the fee far exterior the metro. . . .

“Whether or not provide goes down or not, not less than the deaths are taking place,” Palaia concluded. “And we’ll proceed to teach, and we’ll proceed to try to take as a lot fentanyl off the road as we are able to.”

The FT article suggests what appears to me to be essentially the most believable rationalization for the latest decline in fentanyl deaths, which started on the East Coast:

A 3rd chance is the thought put ahead by Nabarun Dasgupta and colleagues on the US educational collective Opioid Information Lab, that very like an infectious illness epidemic, fentanyl has now labored its means by way of its prone inhabitants. Some died, others found out methods to make use of with out overdosing, so the remaining fentanyl-naive drug-using inhabitants has shrunk. The wave-style dynamics at work right here imply it will additionally theoretically match the east-west sample.

 



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