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Marijuana Legalization and Household Spending on Food and Alcohol

Health Economics 2021 https://onlinelibrary.wiley.com/doi/full/10.1002/hec.4266

Posted: 12 Nov 2020 Last revised: 6 Oct 2022

See all articles by Thanh Lu

Thanh Lu

Cornell University, Weill Cornell Medical College - Department of Population Health Sciences

Date Written: September 22, 2020

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.

Keywords: Recreational Marijuana Laws, Food, Alcohol

JEL Classification: I1

Suggested Citation

Lu, Thanh, Marijuana Legalization and Household Spending on Food and Alcohol (September 22, 2020). Health Economics 2021 https://onlinelibrary.wiley.com/doi/full/10.1002/hec.4266, Available at SSRN: https://ssrn.com/abstract=3697650 or http://dx.doi.org/10.2139/ssrn.3697650

Thanh Lu (Contact Author)

Cornell University, Weill Cornell Medical College - Department of Population Health Sciences ( email )

1300 York Avenue
New York, NY 10065
United States

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