Date of Award
2019
Document Type
Thesis
Degree Name
Bachelor of Arts
Department
Economics
First Advisor
Qi Ge
Abstract
This paper uses a state-level alcohol sales dataset to analyze how marijuana legalization affects alcohol consumption. I employ a difference-in-differences model to investigate the relationship between alcohol and marijuana in the short-term and long-term. In addition, marijuana legalization effects are estimated for different alcohol types – beer, wine and spirits. Overall, the results indicate a negative, yet insignificant relationship between the two narcotic drugs. There is not enough evidence to firmly conclude substitutability or complementarity of the two goods, therefore, leaving the debate unsolved.
Recommended Citation
Rupkus, Edvinas, "Compliment or Substitute? Impact of Marijuana Legalization on Alcohol Consumption" (2019). Economics Student Theses and Capstone Projects. 114.
https://creativematter.skidmore.edu/econ_studt_schol/114