When That Good Kush Goes Bad: An Empirical Study of the Effects of Marijuana Legalization on Crime

Abstract

To date, more than half of U.S. states have passed laws legalizing marijuana for medical or recreational purposes. Despite the strong momentum towards widespread legalization, there still remains contention regarding the effects of these laws on crime rates. In this paper, I use fixed effects models with state panel data from 1996 to 2015 to investigate the impact of medical marijuana laws (MMLs) and recreational use laws on crime. I also explore how specific MML policy dimensions of mandatory patient registry, home cultivation, and legal dispensaries influence crime. My results provide evidence that MMLs are associated with an 8.5% decrease in property crime, and that recreational use laws may increase murder rates, but have little to no significant impact on other crimes. I also find that legal dispensaries are linked to immediate increases in property crime of 8.9% that may decrease over time. I find no significant relationships between patient registry or home cultivation with crime.