Dissertations, Theses, and Capstone Projects

Date of Degree

9-2024

Document Type

Dissertation

Degree Name

Ph.D.

Program

Economics

Advisor

Wim Vijverberg

Committee Members

Prabal De

Miles Corak

Subject Categories

Econometrics | Health Economics | Public Economics | Regional Economics

Keywords

State and Local Government, Regulation, Public Health, Econometric Analysis, Political Processes, Illegal Behavior and the Enforcement of Law

Abstract

This dissertation explores the diffusion and impacts of state recreational marijuana laws (RML). Chapter 1 examines factors driving state adoption and spread of RML, finding that states with citizen ballot initiatives, expansive legislative capacities, and higher fiscal stress are more likely to enact RML. Ideological proximity, rather than geography, drives policy diffusion, with learning from early adopters likely serving as a key mechanism in the process. Chapter 2 assesses first-order effects of RML on marijuana consumption and drug policing using various econometric methods. Results suggest amplification bias in difference-in-differences point estimates due to an endogenous policy variable. This has economic implications for state budgets and public health implications, reframing reduced-form empirical findings in the literature that link RML to downstream effects such as traffic safety and mental health. Chapter 3 examines second-order effects of RML on substance use, mental health, educational attainment, traffic safety, and racial inequities in the criminal justice system, revealing modest increases in negative outcomes but also a decline in the share of children raised in single-parent homes. These insights inform policymakers and public health officials.

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