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Short-term effects of marijuana legalization in Uruguay on homicides: an analysis using synthetic control

Author

Listed:
  • Marco A. Jorge

    (Universidade Federal de Sergipe)

Abstract

The purpose of this paper is to analyze the short-term impacts of Uruguayan policy legalizing marijuana on homicides rate in that country, seeking to contribute to the literature by presenting the first results of this unique situation in the world. To do so, the paper employs the synthetic control methodology whose objective is to create a linear combination of the units of the donor pool, in this case the other countries of South America. The results show that Uruguay witnessed a resurgence in homicidal violence in 2018. It remains to be seen whether this is an occasional movement or a trend caused by the worsening dispute over the illegal drug market, made more restricted after the change in Uruguayan law.

Suggested Citation

  • Marco A. Jorge, 2021. "Short-term effects of marijuana legalization in Uruguay on homicides: an analysis using synthetic control," Economics Bulletin, AccessEcon, vol. 41(3), pages 2021-2028.
    • Handle: RePEc:ebl:ecbull:eb-21-00497
    as

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    References listed on IDEAS

    as
    1. Dragone, Davide & Prarolo, Giovanni & Vanin, Paolo & Zanella, Giulio, 2019. "Crime and the legalization of recreational marijuana," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 488-501.
    2. Bruce L. Benson & Paul R. Zimmerman (ed.), 2010. "Handbook on the Economics of Crime," Books, Edward Elgar Publishing, number 13180.
    3. Abadie, Alberto & Diamond, Alexis & Hainmueller, Jens, 2010. "Synthetic Control Methods for Comparative Case Studies: Estimating the Effect of California’s Tobacco Control Program," Journal of the American Statistical Association, American Statistical Association, vol. 105(490), pages 493-505.
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    JEL classification:

    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • C4 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics

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