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Breaking Bad: Are Meth Labs Justified in Dry Counties?

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  • Fernandez, Jose
  • Gohmann, Stephan
  • Pinkston, Joshua

Abstract

This paper examines the influence of local alcohol prohibition on the prevalence of methamphetamine labs. Using multiple sources of data for counties in Kentucky, we compare various measures of meth manufacturing in wet, moist, and dry counties. Our preferred estimates address the endogeneity of local alcohol policies by using as instrumental variables data on religious affiliations in the 1930s, when most local-option votes took place. Alcohol prohibition status is influenced by the percentage of the population that is Baptist, consistent with the “bootleggers and Baptists” model. Our results suggest that the number of meth lab seizures in Kentucky would decrease by 24.4 percent if all counties became wet.

Suggested Citation

  • Fernandez, Jose & Gohmann, Stephan & Pinkston, Joshua, 2015. "Breaking Bad: Are Meth Labs Justified in Dry Counties?," MPRA Paper 66274, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66274
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    File URL: https://mpra.ub.uni-muenchen.de/75544/1/MPRA_paper_75544.pdf
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    References listed on IDEAS

    as
    1. Conlin, Michael & Dickert-Conlin, Stacy & Pepper, John, 2005. "The Effect of Alcohol Prohibition on Illicit-Drug-Related Crimes," Journal of Law and Economics, University of Chicago Press, vol. 48(1), pages 215-234, April.
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    4. Christopher S. Carpenter, 2005. "Heavy Alcohol Use and the Commission of Nuisance Crime: Evidence from Underage Drunk Driving Laws," American Economic Review, American Economic Association, vol. 95(2), pages 267-272, May.
    5. Pacula, Rosalie Liccardo, 1998. "Does increasing the beer tax reduce marijuana consumption?," Journal of Health Economics, Elsevier, vol. 17(5), pages 557-585, October.
    6. DiNardo, John & Lemieux, Thomas, 2001. "Alcohol, marijuana, and American youth: the unintended consequences of government regulation," Journal of Health Economics, Elsevier, vol. 20(6), pages 991-1010, November.
    7. Toma, Eugenia Froedge, 1988. "State Liquor Licensing, Implicit Contracting, and Dry/Wet Counties," Economic Inquiry, Western Economic Association International, vol. 26(3), pages 507-524, July.
    8. 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.
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    Cited by:

    1. GRANGER Maury & PRICE Gregory, 2016. "Breaking Bad In Mississippi: Do County-Level Alcohol Sale Bans Encourage Crystal Methamphetamine Production And Consumption?," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(3), pages 55-66, December.

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    More about this item

    Keywords

    Alcohol prohibition; methamphetamine production; dry counties;
    All these keywords.

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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