The Economic Impact of Illicit Drug Use on American Society
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U.S. DEPARTMENT OF JUSTICE NATIONAL DRUG INTELLIGENCE CENTER The Economic Impact of Illicit Drug Use on American Society Questions and comments may be directed to National Drug Threat Assessment Unit, National Threat Analysis Branch. National Drug Intelligence Center 319 Washington Street 5th Floor, Johnstown, PA 15901-1622 • (814) 532-4601 NDIC publications are available on the following web sites: INTERNET www.justice.gov/ndic ADNET https://www.adnet.smil.mil/web/ndic/index.htm LEO https://www.leo.gov/http://leowcs.leopriv.gov/lesig/ndic/index.htm JWICS http://www.intelink.ic.gov/sites/ndic 20112011 RISS ndic.riss.net 042111 Product No. 2011-Q0317-002 National Drug Intelligence Center U.S. DEPARTMENT OF JUSTICE NATIONAL DRUG INTELLIGENCE CENTER The Economic Impact of Illicit Drug Use on American Society April 2011 All costs reported in red italics are in thousands. The Economic Impact of Illicit Drug Use on American Society Acknowledgement This publication was sponsored by the United States Department of Justice, National Drug Intelligence Center (NDIC). It was prepared under agreement W909MY-09-P-0031 with Carnevale Associates, LLC. Ronald Simeone, Simeone Associates, Inc., served as the Principal Investigator, and Matthew Maggio served as the Project Manager for NDIC. Disclaimer The opinions expressed herein are the views of the authors and do not necessarily reflect the official policy of the Federal Government. Public Domain Notice All material appearing in this report is in the public domain and may be reproduced without permission from NDIC or the authors. Citation of the source is appreciated. Suggested citation: National Drug Intelligence Center 2011 The Economic Impact of Illicit Drug Use on American Society. Washington D.C.: United States Department of Justice. Electronic Access to Publication This document can be accessed electronically through the following World Wide Web address: http://www.justice.gov/ndic/ Originating Office United States Department of Justice National Drug Intelligence Center Printed in April 2011 ii All costs reported in red italics are in thousands. Product No. 2011-Q0317-002 National Drug Intelligence Center Table of Contents List of Figures ................................................................v List of Tables ................................................................vii Executive Summary .......................................................... ix Comparison of Drug Costs to Other Societal Costs .................................. xi Policy Implications .......................................................... xi References .................................................................xii Overview ....................................................................1 Prevalence and Incidence-Based Approaches .....................................1 Current Scope of Research ......................................................2 Summary of Findings ..........................................................3 Organization of the Report. .6 Chapter 1. The Impact of Illicit Drug Use on Crime .................................7 Attribution of Causality ........................................................7 Criminal Justice System ........................................................9 Crime Victims ..............................................................12 Other .....................................................................16 Chapter 2. The Impact of Illicit Drug Use on Health ...............................21 Specialty Treatment ..........................................................21 Hospitals and Emergency Departments ...........................................23 Homicide ..................................................................26 Insurance Administration ......................................................27 Other .....................................................................27 Chapter 3. The Impact of Illicit Drug Use on Productivity. 29 Labor Participation ...........................................................29 Specialty Treatment ..........................................................33 Hospitalization ..............................................................36 Incarceration ...............................................................37 Premature Mortality ..........................................................45 iii All costs reported in red italics are in thousands. The Economic Impact of Illicit Drug Use on American Society Appendix A. Attribution Factors for Criminal Offenses. 55 Appendix B. Statistical Tables for Premature Mortality .........................................65 Appendix C. Statistical Tables for Homicide .................................................81 Appendix D. Statistical Tables for Present Discounted Value .....................................93 Acronym Glossary ...........................................................97 References ..................................................................99 iv All costs reported in red italics are in thousands. Product No. 2011-Q0317-002 National Drug Intelligence Center List of Figures Overview Statistical Summary. 5 Chapter 1. The Impact of Illicit Drug Use on Crime Figure 1.1. Method for Attribution ...............................................7 Figure 1.2. Criminal Justice System Cost Components ..............................10 Figure 1.3. Criminal Justice System Cost Component Summary .......................13 Figure 1.4. Crime Victim Cost Component Summary ...............................16 Chapter 2. The Impact of Illicit Drug Use on Health Figure 2.1. Specialty Treatment, Hospital, and Emergency Department Cost Components. 22 Chapter 3. The Impact of Illicit Drug Use on Productivity Figure 3.1. Lost Productivity Cost Components ....................................30 Figure 3.2. Incidence-Based ...................................................45 Figure 3.3. Prevalence-Based ..................................................45 Figure 3.4. ICD-9/ICD-10 Comparability .........................................50 v All costs reported in red italics are in thousands. The Economic Impact of Illicit Drug Use on American Society vi All costs reported in red italics are in thousands. Product No. 2011-Q0317-002 National Drug Intelligence Center List of Tables Chapter 1. The Impact of Illicit Drug Use on Crime Table 1.1. Offense Attribution Factors ............................................9 Table 1.2. Proportion of Criminal v Civil Cases ...................................11 Table 1.3. Victimization Costs for Lost Productivity: Violent Crimes ..................18 Table 1.4. Victimization Costs for Lost Productivity: Property Crimes .................19 Chapter 2. The Impact of Illicit Drug Use on Health Table 2.1. Specialty Treatment, Hospital, and Emergency Department Cost Components. 24 Chapter 3. The Impact of Illicit Drug Use on Productivity Table 3.1. Labor Participation .................................................32 Table 3.2. Specialty Treatment (State) ...........................................34 Table 3.3. Specialty Treatment (Federal) .........................................35 Table 3.4. Hospitalization (Full Attribution) ......................................38 Table 3.5. Hospitalization: Hepatitis B (Partial Attribution) ..........................39 Table 3.6. Hospitalization: Hepatitis C (Partial Attribution) ..........................40 Table 3.7. Hospitalization: HIV (Partial Attribution) ...............................41 Table 3.8. Hospitalization: Tuberculosis (Partial Attribution). 42 Table 3.9. Hospitalization: Non-Drug-Induced Primary Diagnosis (Partial Attribution) ....43 Table 3.10. Incarceration ......................................................44 Table 3.11. Premature Mortality: Males (Without ICD-10 Correction) ..................48 Table 3.12. Premature Mortality: Females (Without ICD-10 Correction) .................49 Table 3.13. Premature Mortality: Males (With ICD-10 Correction) .....................51 Table 3.14. Premature Mortality: Females (With ICD-10 Correction) ...................52 Table 3.15. Premature Mortality: Male Homicides ..................................53 Table 3.16. Premature Mortality: Female Homicides ................................54 vii All costs reported in red italics are in thousands. The Economic Impact of Illicit Drug Use on American Society viii All costs reported in red italics are in thousands. U.S. Department of Justice National Drug Intelligence Center The Economic Impact of Illicit Drug Use on American Society Product No. 2011-Q0317-002 Executive Summary (a) Incarceration and homicide com- ponents of Productivity not included in The National Drug Intelligence Center (NDIC) Crime. This may be considered the “base prepares an annual National Drug Threat model” in the analysis. Since some produc- Assessment (NDTA) that provides federal tivity is lost to crime (as when incarceration policymakers and senior officials with a com- or homicide ensues), these elements may be prehensive appraisal of the danger that traffick- treated as either crime costs or productivity ing and use of illicit drugs pose to the security costs. The numbers in this column parse the of our nation. To expand the scope of its NDTA, estimates so that all lost productivity is treated and to provide the Office of National Drug as a productivity cost. Thus: Control Policy (ONDCP) and other federal officials with a broad and deep understanding of • Crime includes three components: criminal the full