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.
Nota bibliográficaFunding Information:
We are very grateful to Charles Courtemanche, Stephen Ross, David Simon and Rusty Tchernis for careful comments and suggestions and to Camila Morales and Tareena Musaddiq for excellent research assistance. Researchers? own analyses calculated (or derived) based in part on data from the Nielsen Company (US), LLC, and marketing databases provided through the Nielsen Datasets at the Kilts Center for Marketing Data Center at the University of Chicago Booth School of Business. The conclusions drawn from the Nielsen data are those of the researchers and do not reflect the views of Nielsen. Nielsen is not responsible for, had no role in and was not involved in analyzing or preparing the results reported herein. Any remaining errors are ours.
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