Langen, M. ORCID: https://orcid.org/0000-0002-9116-4654, Aydin, E., Eichholtz, P. and Kok, N.
(2022)
Getting high or getting low? The external effects of coffeeshops on house prices.
Real Estate Economics, 50 (2).
pp. 565-592.
ISSN 1540-6229
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To link to this item DOI: 10.1111/1540-6229.12365
Abstract/Summary
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 to 8.5 percent in value. The findings are robust to a battery of tests and unaffected by the subsequent use of coffeeshop locations.
Item Type: | Article |
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Refereed: | Yes |
Divisions: | Henley Business School > Real Estate and Planning |
ID Code: | 101041 |
Publisher: | American Real Estate and Urban Economics Association |
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