Going to pot? The impact of dispensary closures on crime

Abstract

Jurisdictions that sanction medical or, more recently, recreational marijuana use often allow retail sales at dispensaries. Dispensaries are controversial as many believe they contribute to local crime. To assess this claim, we analyze the short-term mass closing of hundreds of medical marijuana dispensaries in Los Angeles. Contrary to popular wisdom, we find an immediate increase in crime around dispensaries ordered to close relative to those allowed to remain open. The increase is specific to the type of crime most plausibly deterred by bystanders, and is correlated with neighborhood walkability. We find a similar pattern of results for temporary restaurant closures due to health code violations. A likely common mechanism is that “eyes upon the street” deter some types of crime.

The Effect of Marijuana Dispensary Openings on Housing Prices

“…For instance, if a new dispensary opens in a location that was previously a vacant lot or a failed business, the dispensary will bring new foot traffic and business to the area. The increase in foot traffic is an increase in "eyes on the street," which previous work suggests reduces crime in the immediate area (Chang and Jacobson 2017;Freisthler et al 2016Freisthler et al , 2017 Moreover, dispensaries are known for having high levels of security such as security guards and cameras. Reduced crime is certainly attractive to a homebuyer, and this could explain some of the observed premium of living near a dispensary.…”

“…First, several studies have evaluated the local impacts of dispensary openings (and closures) on local crime rates. Chang and Jacobson (2017) for example, find that localized property crime rates are likely to decrease in response to medical marijuana dispensary openings. See Freisthler et al (2016Freisthler et al ( , 2017 and Kepple and Freisthler (2012) for similar applications.…”

Wet Laws, Drinking Establishments and Violent Crime

“… Using crime data from Los Angeles, Chang and Jacobson () examined the relationship between marijuana dispensaries and crime. They found that crime increased in the immediate vicinity of dispensaries ordered to close. …”

“…Reynolds and Harris (2006) interviewed servers and managers at 21 restaurants, documenting the various tactics used to diffuse situations involving rude and potentially violent customers Tomsen (1997),Graham et al (2000Graham et al ( , 2005. described incidents in which bouncers and doormen clearly contributed to barroom violence, whileRoberts (2007) found that violence was more likely to erupt in bars that did not employ bouncers.4 Using crime data from Los Angeles,Chang and Jacobson (2014) examined the relationship between marijuana dispensaries and crime. They found that crime increased in the immediate vicinity of dispensaries ordered to close.…”

“…Within the context of bystanders in the immediate vicinity of medical marijuana dispensaries and restaurants,Chang and Jacobson (2014) found that 'eyes upon the street' may actually serve to deter crime.© 2016 Royal Economic Society. 1358 T H E E C O N O M I C J O U R N A L [ J U N E…”