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The impact of recreational marijuana dispensaries on crime: evidence from a lottery experiment

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Listed:
  • Xiuming Dong

    (Johns Hopkins University)

  • Justin Tyndall

    (University of Hawaii at Manoa)

Abstract

Many North American jurisdictions have legalized the operation of recreational marijuana dispensaries. A common concern is that dispensaries may contribute to local crime. Identifying the effect of dispensaries on crime is confounded by the spatial endogeneity of dispensary locations. Washington State allocated dispensary licenses through a lottery, providing a natural experiment to estimate the causal effect of dispensaries on neighborhood-level crime. Combining lottery data with detailed geocoded crime data, we estimate that the presence of a dispensary has no significant impact on local crime in the average neighborhood. We estimate a small rise in property crime in low-income neighborhoods specifically.

Suggested Citation

  • Xiuming Dong & Justin Tyndall, 2024. "The impact of recreational marijuana dispensaries on crime: evidence from a lottery experiment," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(4), pages 1383-1414, April.
    • Handle: RePEc:spr:anresc:v:72:y:2024:i:4:d:10.1007_s00168-023-01246-x
    DOI: 10.1007/s00168-023-01246-x
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    More about this item

    Keywords

    R14; R38; R52; K23; K42;
    All these keywords.

    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R50 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - General
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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