Langen, Mike and Aydın, Erdal and Eichholtz, Piet and Kok, Nils (2022) Getting high or getting low? The external effects of coffeeshops on house prices. Real Estate Economics, 50 (2). pp. 565-592. ISSN 1080-8620 (Print) 1540-6229 (Online)
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Official URL: https://dx.doi.org/10.1111/1540-6229.12365
Abstract
Cannabis legalization is a hotly contested policy topic. While beneficial to some, cannabis dispensaries may create negative externalities for others. This paper studies the external effects of coffeeshops—Dutch cannabis sales facilities—on house prices. We employ a difference-in-difference framework around a change in regulation, leading to exogenous coffeeshop closings. We find that closings have a negative effect on house prices. Compared to homes nearby remaining coffeeshops, homes nearby closing coffeeshops decrease on average 1.6–8.5% in value. The findings are robust to a battery of tests and unaffected by the subsequent use of coffeeshop locations.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cannabis; coffeeshops; externalities; housing markets; residential real estate |
| Divisions: | Faculty of Arts and Social Sciences > Academic programs > Economics Faculty of Arts and Social Sciences |
| Depositing User: | Erdal Aydın |
| Date Deposited: | 27 Aug 2022 13:23 |
| Last Modified: | 27 Aug 2022 13:23 |
| URI: | https://research.sabanciuniv.edu/id/eprint/43880 |
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