However, there were differences in how much people paid if they obtained marijuana for recreational purposes from a recreational store. Demand is differentiated by geography and incorporates consumer demographics. Legalizing marijuana can benefit the economy of this nation through the creation of jobs, increased tax revenue, and a decrease in taxpayer money spent on law enforcement.
Second, while owners of illegal businesses must compete for inputs to production with the legal market, those inputs e. As of Januaryonly 85 licensed retail stores were open in the state, even though there were licensed growers operating, causing a collapse of wholesale prices because they could not legally get rid of their product Associated Press, Second, if marijuana prices fall, then fiscal revenues generated from taxes tied to the sales price of marijuana will also decline on a per unit basis.
However, the medical benefits of the drug seem on the process of chemical compounds as compared to the drug itself.
We then provide a description of both the Colorado and Washington medical marijuana markets prior to the opening of retail recreational stores, which is important for understanding how and why prices might differ initially between these two states.
If prices do not decline immediately, or in fact rise for a period after legalization, than it is likely that short run factors are dominating the current market.
However, because current policies are being implemented by state jurisdictions alone while the Federal government maintains its policy of prohibition, it is not clear to what extent production costs will fall even if information asymmetries are reduced.
Results indicate there were no effects on the prices paid for medical or recreational marijuana among state-representative samples of residents within the short four- to five-month window following legalization. The problem has gotten so out of hand that many options are being considered to control it or even solve it.
Next, we present data and conduct analyses that are designed to answer the following main questions: 1 What were the levels of prices in the medical and illegal recreational markets before recreational stores opened in these two states, and how did they change a few months after stores opened there?