✍️✍️✍️ Argumentative Essay: Weed Law In Colorado
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Colorado Law Talks: Armistice in the War on Cannabis - Professor Richard Collins
Policymakers and advocates have long expressed concerns that the positive effects of the legalization--e. Hence, we use changes in property values to measure individuals' willingness to pay to avoid localized externalities caused by the arrival of marijuana dispensaries. Our key identification strategy is to compare changes in housing sales around winners and losers in a lottery for recreational marijuana retail licenses. Due to location restrictions, license applicants were required to provide an address of where they would like to locate. Hence, we have the locations of both actual entrants and potential entrants, which provides a natural difference-in-differences set-up.
Using data from King County, Washington, we find an almost 2. The aforementioned retail license lottery was used to distribute licenses due to a license quota. Retail license quotas are often used by states to regulate entry into sin goods markets as quotas can restrict consumption by decreasing access and by reducing competition and, therefore, increasing markups. However, license quotas also create allocative inefficiency. For example, license quotas are often based on the population of a city or county.
Hence, licenses are not necessarily allocated to the areas where they offer the highest marginal benefit. Moreover, as seen in the case of the Washington recreational marijuana market, licenses are often distributed via lottery, meaning that in the absence of an efficiency secondary market for licenses, the license recipients are not necessarily the most efficient potential entrants. This allocative inefficiency is generated by heterogeneity in firms and consumers. Therefore, in Chapter 2, I develop a model of demand and firm pricing in order to investigate firm-level heterogeneity and inefficiency.
Demand is differentiated by geography and incorporates consumer demographics. I estimate this demand model using data on firm sales from Washington. Utilizing the estimates and firm pricing model, I back out a non-parametric distribution of firm variable costs. These variable costs differ by product and firm and provide a measure of firm inefficiency. I find that variable costs have lower inventory turnover; hence, randomly choosing entrants in a lottery could be a large contributor to allocative inefficiency. People, the ethics of medical marijuana reconsidered Colorado voters amended their country have to ten of marijuana laws.
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