IDEAS home Printed from https://ideas.repec.org/p/fip/fedpwp/17-19.html
   My bibliography  Save this paper

Not in My Backyard? Not So Fast. The Effect of Marijuana Legalization on Neighborhood Crime

Author

Listed:
  • Brinkman, Jeffrey

    (Federal Reserve Bank of Philadelphia)

  • Mok-Lamme, David

    (Federal Reserve Bank of Philadelphia)

Abstract

This paper studies the effects of marijuana legalization on neighborhood crime using unique geospatial data from Denver, Colorado. We construct a highly local panel data set that includes changes in the location of marijuana dispensaries and changes in neighborhood crime. To account for endogenous retail dispensary locations, we use a novel identification strategy that exploits exogenous changes in demand across different locations. The change in geographic demand arises from the increased importance of access to external markets caused by a change in state and local policy. The results imply that retail dispensaries lead to reduced crime in the neighborhoods where they are located. Reductions in crime are highly localized, with no evidence of benefits for adjacent neighborhoods. The spatial extent of these effects are consistent with a policing or security response, and analysis of detailed crime categories provides indirect evidence that the reduction in crime arises from a disruption of illicit markets.

Suggested Citation

  • Brinkman, Jeffrey & Mok-Lamme, David, 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.
  • Handle: RePEc:fip:fedpwp:17-19
    as

    Download full text from publisher

    File URL: https://www.philadelphiafed.org/-/media/research-and-data/publications/working-papers/2017/wp17-19.pdf?utm_campaign=WorkingPapers&utm_source=2017/07/17&utm_medium=E-mail
    File Function: Full text
    Download Restriction: no

    References listed on IDEAS

    as
    1. D. Mark Anderson & Daniel I. Rees, 2014. "The Legalization of Recreational Marijuana: How Likely Is the Worst‐Case Scenario?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(1), pages 221-232, January.
    2. Peter Davis, 2006. "Spatial competition in retail markets: movie theaters," RAND Journal of Economics, RAND Corporation, vol. 37(4), pages 964-982, December.
    3. Card, David & Krueger, Alan B, 1994. "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania," American Economic Review, American Economic Association, vol. 84(4), pages 772-793, September.
    4. Matthew Harding & Ephraim Leibtag & Michael F. Lovenheim, 2012. "The Heterogeneous Geographic and Socioeconomic Incidence of Cigarette Taxes: Evidence from Nielsen Homescan Data," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 169-198, November.
    5. Kerwin Kofi Charles & Ming Ching Luoh, 2010. "Male Incarceration, the Marriage Market, and Female Outcomes," The Review of Economics and Statistics, MIT Press, vol. 92(3), pages 614-627, August.
    6. Dara Lee Luca & Emily Owens & Gunjan Sharma, 2015. "Can Alcohol Prohibition Reduce Violence against Women?," American Economic Review, American Economic Association, vol. 105(5), pages 625-629, May.
    7. van Ours, Jan C. & Williams, Jenny, 2012. "The effects of cannabis use on physical and mental health," Journal of Health Economics, Elsevier, vol. 31(4), pages 564-577.
    8. van Ours, Jan C. & Williams, Jenny, 2009. "Why parents worry: Initiation into cannabis use by youth and their educational attainment," Journal of Health Economics, Elsevier, vol. 28(1), pages 132-142, January.
    9. repec:rje:randje:v:37:y:2006:i:4:p:964-982 is not listed on IDEAS
    10. Thomas J. Holmes, 1998. "The Effect of State Policies on the Location of Manufacturing: Evidence from State Borders," Journal of Political Economy, University of Chicago Press, vol. 106(4), pages 667-705, August.
    11. Huber III Arthur & Newman Rebecca & LaFave Daniel, 2016. "Cannabis Control and Crime: Medicinal Use, Depenalization and the War on Drugs," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 16(4), pages 1-35, October.
    12. Jérôme Adda & Brendon McConnell & Imran Rasul, 2014. "Crime and the Depenalization of Cannabis Possession: Evidence from a Policing Experiment," Journal of Political Economy, University of Chicago Press, vol. 122(5), pages 1130-1202.
    13. Emily G. Owens, 2014. "The American Temperance Movement and Market-Based Violence," American Law and Economics Review, Oxford University Press, vol. 16(2), pages 433-472.
    14. Dills, Angela K. & Jacobson, Mireille & Miron, Jeffrey A., 2005. "The effect of alcohol prohibition on alcohol consumption: evidence from drunkenness arrests," Economics Letters, Elsevier, vol. 86(2), pages 279-284, February.
    15. David R. Agrawal, 2015. "The Tax Gradient: Spatial Aspects of Fiscal Competition," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 1-29, May.
    16. Adda, Jérôme & McConnell, Brendon & Rasul, Imran, 2014. "Crime and the depenalization of cannabis possession: evidence," Economics Working Papers ECO2014/05, European University Institute.
    17. repec:aea:aejpol:v:9:y:2017:i:4:p:28-63 is not listed on IDEAS
    18. Andrew Resignato, 2000. "Violent crime: a function of drug use or drug enforcement?," Applied Economics, Taylor & Francis Journals, vol. 32(6), pages 681-688.
    19. Paul Bisschop & Stephen Kastoryano & Bas van der Klaauw, 2017. "Street Prostitution Zones and Crime," American Economic Journal: Economic Policy, American Economic Association, vol. 9(4), pages 28-63, November.
    20. Jeffrey A. Miron & Jeffrey Zwiebel, 1995. "The Economic Case against Drug Prohibition," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 175-192, Fall.
    21. ., 2006. "History and Development Studies," Chapters,in: The Elgar Companion to Development Studies, chapter 47 Edward Elgar Publishing.
    22. anonymous, 2006. "History of central banking: from 1791 through deregulation," Monograph, Federal Reserve Bank of Philadelphia, number 2006hocf1t, Q2.
    23. Jeff Grogger & Michael Willis, 2000. "The Emergence Of Crack Cocaine And The Rise In Urban Crime Rates," The Review of Economics and Statistics, MIT Press, vol. 82(4), pages 519-529, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carrieri, V.; & Madio, L.; & Principe, F.;, 2018. "Light cannabis and organized crime. Evidence from (unintended) liberalization in Italy," Health, Econometrics and Data Group (HEDG) Working Papers 18/15, HEDG, c/o Department of Economics, University of York.

    More about this item

    Keywords

    legalization; drugs; crime; policy evaluation;

    JEL classification:

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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedpwp:17-19. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Beth Paul). General contact details of provider: http://edirc.repec.org/data/frbphus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.