Legalization of the cannabis market effects: Significant reduction in rapes and property crimes, increased consumption of marijuana & reduced consumption of other drugs and both ordinary & binge alcohol

Crime and the legalization of recreational marijuana. Davide Dragone, Giovanni Prarolo, Paolo Vanin, Giulio Zanella. Journal of Economic Behavior & Organization, https://doi.org/10.1016/j.jebo.2018.02.005

Abstract: First-pass evidence is provided that the legalization of the cannabis market across US states is inducing a crime drop. We exploit the staggered legalization of recreational marijuana enacted by the adjacent states of Washington (end of 2012) and Oregon (end of 2014). Combining county-level difference-in-differences and spatial regression discontinuity designs, we find that the policy caused a significant reduction in rapes and property crimes on the Washington side of the border in 2013-2014 relative to the Oregon side and relative to the pre-legalization years 2010-2012. The legalization also increased consumption of marijuana and reduced consumption of other drugs and both ordinary and binge alcohol. Four possible mechanisms are discussed: the direct psychotropic effects of cannabis; substitution away from violence-inducing substances; reallocation of police effort; reduced role of criminals in the marijuana business.

Keywords: Cannabis; Recreational marijuana; Crime

Check also Gavrilova, E., Kamada, T. and Zoutman, F. (2017), Is Legal Pot Crippling Mexican Drug Trafficking Organisations? The Effect of Medical Marijuana Laws on US Crime. Econ J. http://www.bipartisanalliance.com/2018/01/is-legal-pot-crippling-mexican-drug.html