The study investigates the causal impacts of density (number of dispensaries/square mile) of marijuana dispensaries, using hedonic methods. Using 8,772 arms-length property sales that occurred between 2009-2016, in the city of Los Angeles, California, the study estimated quasi-experimental hedonic price models (difference-in-difference regression) and matching estimation method, to explore the capitalized effects of varying levels of marijuana dispensary density on the nearby property values. The results from quasi-experimental specifications (matching models) show residential houses located higher density of marijuana dispensaries are approximately 4.7%-15.2% (6.3%-19%) more expensive than identical houses located within lower density of marijuana dispensaries.

Authors:
James Yoo, California Baptist University, United States

About the Presenter(s)
Dr James Yoo is a University Associate Professor/Senior Lecturer at California Baptist University in United States

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