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Marijuana and alcohol: Evidence using border analysis and retail sales data

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  • Michele Baggio
  • Alberto Chong
  • Sungoh Kwon

Abstract

We use retail scanner data on purchases of alcoholic beverages across US counties for 2006 to 2015 to study the link between medical marijuana laws (MMLs) and alcohol consumption. To do this, we exploit differences in the timing of marijuana laws among states and find that they are substitutes. We show that unlike traditional national‐level analysis, focusing on contiguous‐border county pairs provides unbiased estimates of the effect of MMLs on alcohol sales. Specifically, alcohol sales in counties located in MML states decreased by 12.4%. Results are robust to including placebo effective dates for MMLs in treated states. Marijuana et alcool: analyse transfrontalière et données relatives à la vente au détail. Afin d’étudier la corrélation entre les lois sur la marijuana médicale (LMM) et la consommation d’alcool, nous nous sommes appuyés sur les données de vente au détail de boissons alcoolisées dans différents comtés des États‐Unis entre 2005 et 2016. À cette fin, nous avons d’abord exploité le décalage dans le temps des mises en œ uvre des LMM dans les états concernés, et avons découvert qu’alcool et marijuana se substituaient l’un à l’autre. Nous montrons également qu’une analyse réalisée sur des paires de comtés transfrontaliers, contrairement à une étude traditionnelle réalisée à l’échelle nationale, permettait de fournir des évaluations fiables relativement à l’incidence des LMM sur les ventes d’alcool. Plus précisément, le volume mensuel des ventes d’alcool dans les comtés situés dans des états ayant passé des lois sur la marijuana médicale a diminué de 12,4 %. Les résultats restent robustes même en intégrant de fausses dates de mise en œ uvre des LLM dans les états étudiés.

Suggested Citation

  • Michele Baggio & Alberto Chong & Sungoh Kwon, 2020. "Marijuana and alcohol: Evidence using border analysis and retail sales data," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(2), pages 563-591, May.
  • Handle: RePEc:wly:canjec:v:53:y:2020:i:2:p:563-591
    DOI: 10.1111/caje.12437
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    2. Baggio, Michele & Chong, Alberto, 2020. "Recreational marijuana laws and junk food consumption," Economics & Human Biology, Elsevier, vol. 39(C).
    3. Davide Fortin, 2024. "Legalizing cannabis in Colorado: Displacement or market expansion?," French Stata Users' Group Meetings 2024 03, Stata Users Group.
    4. Armstrong, Michael J., 2023. "Relationships between sales of legal medical cannabis and alcohol in Canada," Health Policy, Elsevier, vol. 128(C), pages 28-33.
    5. Christian Gunadi, 2022. "Does expanding access to cannabis affect traffic crashes? County‐level evidence from recreational marijuana dispensary sales in Colorado," Health Economics, John Wiley & Sons, Ltd., vol. 31(10), pages 2244-2268, October.
    6. Meinhofer, Angélica & Witman, Allison E. & Hinde, Jesse M. & Simon, Kosali, 2021. "Marijuana liberalization policies and perinatal health," Journal of Health Economics, Elsevier, vol. 80(C).
    7. Mir M. Ali & Chandler McClellan & Ryan Mutter & Daniel I. Rees, 2023. "Recreational marijuana laws and the misuse of prescription opioids: Evidence from National Survey on Drug Use and Health microdata," Health Economics, John Wiley & Sons, Ltd., vol. 32(2), pages 277-301, February.
    8. Amialchuk, Aliaksandr A. & Buckingham, Brooke M., 2024. "The effect of marijuana use in adolescence on college and graduate degree attainment," Economics & Human Biology, Elsevier, vol. 52(C).
    9. Sabia, Joseph J. & Dave, Dhaval & Alotaibi, Fawaz & Rees, Daniel I., 2024. "The effects of recreational marijuana laws on drug use and crime," Journal of Public Economics, Elsevier, vol. 234(C).
    10. Anderson, D. Mark & Rees, Daniel I., 2021. "The Public Health Effects of Legalizing Marijuana," IZA Discussion Papers 14292, Institute of Labor Economics (IZA).
    11. Cameron M. Ellis & Martin F. Grace & Rhet A. Smith & Juan Zhang, 2022. "Medical cannabis and automobile accidents: Evidence from auto insurance," Health Economics, John Wiley & Sons, Ltd., vol. 31(9), pages 1878-1897, September.
    12. Qin, Fei & Ma, Meilin, 2022. "Unit Pricing Regulation and Non-Price Responses of Retailers: Evidence from the U.S. Yogurt Market," 2022 Annual Meeting, July 31-August 2, Anaheim, California 322243, Agricultural and Applied Economics Association.
    13. Raymond J. March & Veeshan Rayamajhee & Glenn L. Furton, 2022. "Cloudy with a chance of munchies: Assessing the impact of recreational marijuana legalization on obesity," Health Economics, John Wiley & Sons, Ltd., vol. 31(12), pages 2609-2629, December.
    14. Briggs Depew & Jacob Meyer, 2023. "Legal access to alcohol and automobile accidents: Potential interactive effects of alcohol and drug consumption," Contemporary Economic Policy, Western Economic Association International, vol. 41(2), pages 338-353, April.

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