Marijuana Law, Policy & Reform

Editor: Douglas A. Berman
Moritz College of Law

Saturday, November 21, 2020

"Marijuana Legalization and Household Spending on Food and Alcohol"

The title of this post is the title of this interesting new paper recently posted to SSRN and authored by Thanh Lu. Here is its abstract:

Utilizing the Consumer Expenditure Interview Survey from 2005 to 2018, I study spending on food and alcohol following recreational marijuana legalization (RML).  Exploiting differences in the timing of the passage of RMLs and employing differences-in-differences methods, I find that households located in RML states increase their quarterly spending on food by $67.69, which is driven mainly by spending on food consumed away from home.  Legalization of recreational marijuana also leads to increased quarterly spending on alcohol by $11.23. These findings suggest a complementarity between food, alcohol, and marijuana.

https://lawprofessors.typepad.com/marijuana_law/2020/11/marijuana-legalization-and-household-spending-on-food-and-alcohol.html

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