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The Cross‐Border Spillover Effects Of Recreational Marijuana Legalization

Author

Listed:
  • Zhuang Hao
  • Benjamin W. Cowan

Abstract

We examine the spillover effects of recreational marijuana legalization (RML) in Colorado and Washington on neighboring states. We find that RML causes a sharp increase in marijuana possession arrests in border counties of neighboring states relative to nonborder counties in these states. RML has no impact on juvenile marijuana possession arrests but is rather fully concentrated among adults. We find mixed results regarding the source(s) of this change. Using separate data on self‐reported marijuana use, we show that RML is accompanied by an increase in use in neighboring states relative to non‐neighboring states. However, the increase in arrests following RML is highly concentrated in a few states, which we argue is more consistent with a change in police enforcement near some state borders driving the arrest results. (JEL I12, I18, K14)

Suggested Citation

  • Zhuang Hao & Benjamin W. Cowan, 2020. "The Cross‐Border Spillover Effects Of Recreational Marijuana Legalization," Economic Inquiry, Western Economic Association International, vol. 58(2), pages 642-666, April.
    • Handle: RePEc:bla:ecinqu:v:58:y:2020:i:2:p:642-666
    DOI: 10.1111/ecin.12764
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    Citations

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    Cited by:

    1. Meehan, Brian & Rusko, Corey J. & Stephenson, E. Frank, 2020. "(Pot)Heads in Beds: The Eect of Marijuana Legalization on Hotel Occupancy in Colorado and Washington," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 50(1), May.
    2. Grant W. Neeley & Lilliard E. Richardson Jr., 2022. "Marijuana Policy Bundles in the American States Over Time and Their Impact on the Use of Marijuana and Other Drugs," Evaluation Review, , vol. 46(2), pages 165-199, April.
    3. Calkins, Lindsay N. & Ryan, Alexander J. & Zlatoper, Thomas J., 2023. "The Political Economy of Recreational Marijuana Laws in the U.S.: A Spatial Approach," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 53(1), April.
    4. DeLang, Mason & Taheri, Sema A. & Hutchison, Robert & Hawke, Nathan, 2022. "Tackling UCR's missing data problem: A multiple imputation approach," Journal of Criminal Justice, Elsevier, vol. 79(C).
    5. Fone, Zachary S. & Sabia, Joseph J. & Cesur, Resul, 2023. "The unintended effects of minimum wage increases on crime," Journal of Public Economics, Elsevier, vol. 219(C).
    6. Perrotta Berlin, Maria & Latour, Chiara & Spagnolo, Giancarlo, 2023. "International Spillovers from Prostitution Regulation: The "Nordic Model" and Sex Tourism," SITE Working Paper Series 63, Stockholm School of Economics, Stockholm Institute of Transition Economics, revised 25 Sep 2023.
    7. Petrova, Olga & Gray, Natallia, 2021. "The effects of medical marijuana laws on birth outcomes: Evidence from early adopting U.S. states," Economic Analysis and Policy, Elsevier, vol. 69(C), pages 68-82.
    8. Wu, Guangzhen & Wen, Ming & Wilson, Fernando A., 2021. "Impact of recreational marijuana legalization on crime: Evidence from Oregon," Journal of Criminal Justice, Elsevier, vol. 72(C).
    9. Ken Yahagi, 2022. "Regulation on coexisting legal and illegal markets with quality differentiation," European Journal of Law and Economics, Springer, vol. 53(2), pages 235-259, April.

    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law

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