Does the Legalization of Medical Marijuana Affect State GDP Growth Rates?
Abstract
This paper attempts to quantify the effect that legalizing medical marijuana has on state GDP growth rates. My research uses state-level panel data from 1996 to 2013 to estimate the GDP growth caused by an emerging medical marijuana industry. I find that having a legalized medical marijuana industry has a substantial, positive impact on state GDP growth. With respect to the average GDP growth rate of 2.454 percent, medical marijuana legalization causes a 25.8 percentage point increase in the state GDP growth rate.
Session Name:
Risky Business
Start Date
10-4-2015 2:30 PM
End Date
10-4-2015 3:30 PM
Location
HSB 300
Does the Legalization of Medical Marijuana Affect State GDP Growth Rates?
HSB 300
This paper attempts to quantify the effect that legalizing medical marijuana has on state GDP growth rates. My research uses state-level panel data from 1996 to 2013 to estimate the GDP growth caused by an emerging medical marijuana industry. I find that having a legalized medical marijuana industry has a substantial, positive impact on state GDP growth. With respect to the average GDP growth rate of 2.454 percent, medical marijuana legalization causes a 25.8 percentage point increase in the state GDP growth rate.