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The short-run effects of marijuana dispensary openings on local crime

Author

Listed:
  • Jesse Burkhardt

    (Colorado State University)

  • Chris Goemans

    (Colorado State University)

Abstract

The recent legalization of marijuana in several states has led to increased public interest regarding the effect of legalization on crime. Yet, there is limited empirical evidence relating the legalization of marijuana use and distribution to criminal activity. This paper uses a difference-in-differences design to estimate the effect of marijuana dispensary openings on local crime rates in Denver, Colorado. We find that the opening of dispensaries actually decreases violent crime rates in above median income neighborhoods, an important finding in light of increased political debate surrounding legalization. We also find robust evidence that non-marijuana drug-related crimes decrease within a half-mile of new dispensaries but do not simultaneously increase within a half-mile to mile of new dispensaries, with one possible explanation being that legal marijuana sales and hard drug sales are local substitutes. Finally, in line with previous research, we find that vehicle break-ins increase up to a mile away from new dispensaries.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:anresc:v:63:y:2019:i:1:d:10.1007_s00168-019-00931-0
    DOI: 10.1007/s00168-019-00931-0
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    References listed on IDEAS

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    Cited by:

    1. Eric L. Sevigny & Rosalie L. Pacula & Ariel M. Aloe & Danye N. Medhin & Jared Greathouse, 2021. "PROTOCOL: The effects of cannabis liberalization laws on health, safety, and socioeconomic outcomes: An evidence and gap map," Campbell Systematic Reviews, John Wiley & Sons, vol. 17(1), March.
    2. Parisa Kavousi & Taylor Giamo & Gwen Arnold & Mateo Alliende & Elisabeth Huynh & Jaclyn Lea & Rachel Lucine & Alexandria Tillett Miller & Alana Webre & Aneka Yee & Adrianna Champagne‐Zamora & Keith Ta, 2022. "What do we know about opportunities and challenges for localities from Cannabis legalization?," Review of Policy Research, Policy Studies Organization, vol. 39(2), pages 143-169, March.
    3. Scott Callahan & David M. Bruner & Chris Giguere, 2021. "Smoke and Fears: The Effects of Marijuana Prohibition on Crime," Working Papers 21-12, Department of Economics, Appalachian State University.

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    More about this item

    JEL classification:

    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General

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