Date of Award
Bachelor of Arts
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.
Rupkus, Edvinas, "Compliment or Substitute? Impact of Marijuana Legalization on Alcohol Consumption" (2019). Economics Student Theses and Capstone Projects. 114.