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Going to pot? The impact of dispensary closures on crime

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  • Chang, Tom Y.
  • Jacobson, Mireille

Abstract

Jurisdictions that sanction medical or, more recently, recreational marijuana use often allow retail sales at dispensaries. Dispensaries are controversial as many believe they contribute to local crime. To assess this claim, we analyze the short-term mass closing of hundreds of medical marijuana dispensaries in Los Angeles. Contrary to popular wisdom, we find an immediate increase in crime around dispensaries ordered to close relative to those allowed to remain open. The increase is specific to the type of crime most plausibly deterred by bystanders, and is correlated with neighborhood walkability. We find a similar pattern of results for temporary restaurant closures due to health code violations. A likely common mechanism is that “eyes upon the street” deter some types of crime.

Suggested Citation

  • Chang, Tom Y. & Jacobson, Mireille, 2017. "Going to pot? The impact of dispensary closures on crime," Journal of Urban Economics, Elsevier, vol. 100(C), pages 120-136.
    • Handle: RePEc:eee:juecon:v:100:y:2017:i:c:p:120-136
    DOI: 10.1016/j.jue.2017.04.001
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    3. Chu, Yu-Wei Luke & Townsend, Wilbur, 2019. "Joint culpability: The effects of medical marijuana laws on crime," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 502-525.
    4. Carrieri, Vincenzo & Madio, Leonardo & Principe, Francesco, 2020. "Do-It-Yourself medicine? The impact of light cannabis liberalization on prescription drugs," Journal of Health Economics, Elsevier, vol. 74(C).
    5. D. Mark Anderson & Benjamin Crost & Daniel I. Rees, 2018. "Wet Laws, Drinking Establishments and Violent Crime," Economic Journal, Royal Economic Society, vol. 128(611), pages 1333-1366, June.
    6. Jesse Burkhardt & Chris Goemans, 2019. "The short-run effects of marijuana dispensary openings on local crime," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 63(1), pages 163-189, August.
    7. Auriol, Emmanuelle & Mesnard, Alice & Perrault, Tiffanie, 2023. "Weeding out the dealers? The economics of cannabis legalization," Journal of Economic Behavior & Organization, Elsevier, vol. 216(C), pages 62-101.
    8. Abrams, David S., 2021. "COVID and crime: An early empirical look," Journal of Public Economics, Elsevier, vol. 194(C).
    9. Justin Tyndall, 2021. "Getting High and Low Prices: Marijuana Dispensaries and Home Values," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 49(4), pages 1093-1119, December.
    10. Jeffrey Brinkman & David Mok-Lamme, 2017. "Not in My Backyard? Not So Fast. The Effect of Marijuana Legalization on Neighborhood Crime," Working Papers 17-19, Federal Reserve Bank of Philadelphia.
    11. Steinberg, Matthew P. & Ukert, Benjamin & MacDonald, John M., 2019. "Schools as places of crime? Evidence from closing chronically underperforming schools," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 125-140.
    12. Bruijn, L. Michelle & Ribas, Rafael P., 2022. "“No drugs in my back yard:” The ambivalent reception of cannabis retailers," Journal of Economic Behavior & Organization, Elsevier, vol. 199(C), pages 103-121.
    13. Anderson, D. Mark & Rees, Daniel I., 2021. "The Public Health Effects of Legalizing Marijuana," IZA Discussion Papers 14292, Institute of Labor Economics (IZA).
    14. Johnson, Josiah & Smith, Rhet A., 2023. "Main street business initiatives and crime in small towns," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 91-112.
    15. Xiuming Dong & Justin Tyndall, 2021. "The Impact of Recreational Marijuana Dispensaries on Crime: Evidence from a Lottery Experiment," Working Papers 2021-1, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    16. Mike Langen & Erdal Aydin & Piet Eichholtz & Nils Kok, 2022. "Getting high or getting low? the external effects of coffeeshops on house prices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 50(2), pages 565-592, June.
    17. Auriol, Emmanuelle & Mesnard, Alice & Perrault, Tiffanie, 2019. "Defeating Crime? An Economic Analysis of Cannabis Legalization Policies," CEPR Discussion Papers 13814, C.E.P.R. Discussion Papers.
    18. Andreyeva Elena & Ukert Benjamin, 2019. "The Impact of Medical Marijuana Laws and Dispensaries on Self-Reported Health," Forum for Health Economics & Policy, De Gruyter, vol. 22(2), pages 1-20, December.
    19. Reinartz, Werner & Wiegand, Nico & Imschloss, Monika, 2019. "The impact of digital transformation on the retailing value chain," International Journal of Research in Marketing, Elsevier, vol. 36(3), pages 350-366.
    20. Hunt, Priscillia E & Pacula, Rosalie Liccardo & Weinberger, Gabriel, 2018. "High on Crime? Exploring the Effects of Marijuana Dispensary Laws on Crime in California Counties," IZA Discussion Papers 11567, Institute of Labor Economics (IZA).
    21. Erasmo Giambona & Rafael P. Ribas, 2023. "Unveiling the Price of Obscenity: Evidence From Closing Prostitution Windows in Amsterdam," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 42(3), pages 677-705, June.

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