Was it important? A new GLO Discussion Paper finds that while marijuana-related hospital discharge rose, there is lack of evidence that traffic crash incidents were affected.
GLO Discussion Paper No. 964, 2021
GLO Fellow Christian Gunadi
Author Abstract: This article examines the effect of recreational cannabis dispensary sales on traffic crashes by employing difference-in-differences model that exploits the variation in the timing of recreational marijuana dispensary entry across counties within Colorado. Using marijuana-related hospital discharge as a proxy for marijuana use, the results indicate a sizable rise in marijuana-related hospital discharges after the entry of retail cannabis stores. However, there is a lack of evidence that traffic crash incidents are affected by the entry. The preferred estimate suggests that, at 90% confidence level, a large increase in traffic crashes by more than 5% can be ruled out.
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