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Not in my backyard? Not so fast. The effect of marijuana legalization on neighborhood crime

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  • Brinkman, Jeffrey
  • Mok-Lamme, David

Abstract

This paper studies the effects of marijuana legalization on neighborhood crime and documents the patterns in retail dispensary locations over time using detailed micro-level data from Denver, Colorado. To account for endogenous retail dispensary locations, we use a novel identification strategy that exploits exogenous changes in demand across different locations arising from the increased importance of external markets after the legalization of recreational marijuana sales. The results imply that an additional dispensary in a neighborhood leads to a reduction of 17 crimes per month per 10,000 residents, which corresponds to roughly a 19 percent decline relative to the average crime rate over the sample period. Reductions in crime are highly localized, with no evidence of spillover benefits to adjacent neighborhoods. Analysis of detailed crime categories provides insights into the mechanisms underlying the reductions.

Suggested Citation

  • Brinkman, Jeffrey & Mok-Lamme, David, 2019. "Not in my backyard? Not so fast. The effect of marijuana legalization on neighborhood crime," Regional Science and Urban Economics, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:regeco:v:78:y:2019:i:c:s016604621830293x
    DOI: 10.1016/j.regsciurbeco.2019.103460
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    Citations

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    Cited by:

    1. Thomas, Danna & Tian, Lin, 2021. "Hits from the Bong: The impact of recreational marijuana dispensaries on property values," Regional Science and Urban Economics, Elsevier, vol. 87(C).
    2. 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).
    3. John Gardner & Bright Osei, 2022. "Recreational marijuana legalization and admission to the foster‐care system," Economic Inquiry, Western Economic Association International, vol. 60(3), pages 1311-1334, July.
    4. 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.
    5. 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.
    6. Sharma, Hari, 2020. "The effect of emigration and remittances on labour supply of the left-behind: Evidence from Nepal," MPRA Paper 102091, University Library of Munich, Germany.
    7. 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.

    More about this item

    Keywords

    Legalization; Drugs; Crime; Policy evaluation;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects

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