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Do-It-Yourself medicine? The impact of light cannabis liberalization on prescription drugs

Author

Listed:
  • Vincenzo Carrieri

    (UMG - Università degli Studi "Magna Graecia" di Catanzaro [Catanzaro, Italie])

  • Leonardo Madio

    (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Francesco Principe

    (Erasmus University School of Economics - Erasmus university)

Abstract

Governments worldwide are increasingly concerned about the booming use of CBD (cannabidiol) products. However, we know little about the impact of their liberalization. We study a unique case of unintended liberalization of a CBD-based product (light cannabis) that occurred in Italy in 2017. Using unique and high-frequency data on prescription drug sales and by exploiting the staggered local availability of the new product in each Italian province, we document a significant substitution effect between light cannabis and anxiolytics, sedatives, opioids, anti-depressants and anti-psychotics. Results are informative for regulators and suggest that bans on light cannabis use would disregard the needs of patients to seek effective reliefs of their symptoms.

Suggested Citation

  • Vincenzo Carrieri & Leonardo Madio & Francesco Principe, 2020. "Do-It-Yourself medicine? The impact of light cannabis liberalization on prescription drugs," Post-Print hal-02945943, HAL.
  • Handle: RePEc:hal:journl:hal-02945943
    DOI: 10.1016/j.jhealeco.2020.102371
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02945943
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    More about this item

    Keywords

    Light cannabis; self-medication; marijuana; difference-in-difference; prescription drugs; CBD.;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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