Marijuana and alcohol: Evidence using border analysis and retail sales data

Michele Baggio; Alberto Chong; Sungoh Kwon

doi:10.1111/caje.12437

Marijuana and alcohol: Evidence using border analysis and retail sales data

Michele Baggio, Alberto Chong, Sungoh Kwon

Research output: Contribution to journal › Article in a journal › peer-review

23 Scopus citations

Abstract

We use retail scanner data on purchases of alcoholic beverages across US counties for 2006 to 2015 to study the link between medical marijuana laws (MMLs) and alcohol consumption. To do this, we exploit differences in the timing of marijuana laws among states and find that they are substitutes. We show that unlike traditional national-level analysis, focusing on contiguous-border county pairs provides unbiased estimates of the effect of MMLs on alcohol sales. Specifically, alcohol sales in counties located in MML states decreased by 12.4%. Results are robust to including placebo effective dates for MMLs in treated states.

Original language	English
Pages (from-to)	563-591
Number of pages	29
Journal	Canadian Journal of Economics
Volume	53
Issue number	2
DOIs	https://doi.org/10.1111/caje.12437
State	Published - 7 May 2020

Bibliographical note

Publisher Copyright:
© 2020 Canadian Economics Association

Keywords

Alcohol consumption
Border region
Consumption behavior
Drug prescribing
drug user
Drugs trade
Retailing
Cannabis sativa

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1111/caje.12437

Cite this

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abstract = "We use retail scanner data on purchases of alcoholic beverages across US counties for 2006 to 2015 to study the link between medical marijuana laws (MMLs) and alcohol consumption. To do this, we exploit differences in the timing of marijuana laws among states and find that they are substitutes. We show that unlike traditional national-level analysis, focusing on contiguous-border county pairs provides unbiased estimates of the effect of MMLs on alcohol sales. Specifically, alcohol sales in counties located in MML states decreased by 12.4%. Results are robust to including placebo effective dates for MMLs in treated states.",

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AU - Kwon, Sungoh

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KW - Consumption behavior

KW - Drug prescribing

KW - drug user

KW - Drugs trade

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Marijuana and alcohol: Evidence using border analysis and retail sales data

Abstract

Bibliographical note

Keywords

UN SDGs

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