Document Type

Article

Publication Date

11-2016

Department

Economics

Abstract

This paper examines the influence of local alcohol prohibition on the prevalence of methamphetamine labs. Using multiple sources of data for counties in Kentucky, we compare various measures of meth manufacturing in wet, moist, and dry counties. Our preferred estimates address the endogeneity of local alcohol policies by exploiting differences in counties’ religious compositions between the 1930s, when most local-option votes took place, and recent years. Even controlling for current religious affiliations, religious composition following the end of national Prohibition strongly predicts current alcohol restrictions. We carefully examine the validity of our identifying assumptions, and consider identification under alternative assumptions. Our results suggest that the number of meth lab seizures in Kentucky would decrease by 34.5 percent if all counties became wet.

Comments

This is a pre-published version of the article, which was published in final form in the Southern Economic Journal, volume 82, in March 2018.

Original Publication Information

Jose M Fernandez, Stephan Gohmann and Joshua Pinkston. "Breaking Bad in Bourbon Country: Does Alcohol Prohibition Encourage Methamphetamine Production?" Southern Economic Journal Vol. 82 (2018) p. 1001 - 1023

DOI

10.1002/soej.12262

ORCID

0000-0002-1488-6063

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