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THE EFFECT OF MARIJUANA DISPENSARY OPENINGS ON HOUSING PRICES
Author(s) -
Burkhardt Jesse,
Flyr Matthew
Publication year - 2019
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/coep.12414
Subject(s) - dispensary , recreation , mile , socioeconomic status , demographic economics , legalization , empirical evidence , economics , business , environmental health , geography , medicine , population , psychiatry , philosophy , geodesy , family medicine , epistemology , political science , law
We evaluate the effect of medical and recreational dispensary openings on housing prices in Denver, Colorado. Using an event study approach, we find that the introduction of a new dispensary within a half‐mile radius of a new home increases home prices by approximately 7.7% on average. The effect diminishes for homes further from new dispensaries but is consistent over time. Our results provide important and timely empirical evidence on the socioeconomic impacts of marijuana legalization. ( JEL R32, R38, R5)