CEU Electronic Theses and Dissertations, 2014
| Author | Kovic, Nikola |
|---|---|
| Title | ECONOMIC BENEFITS OF MARIJUANA LEGALIZATION |
| Summary | ABSTRACT There is a vast and growing academic literature regarding the economic consequences of prohibition, de-criminalization and legalization of marijuana. Economic theory suggests that de-criminalization and legalization by regulation and taxation is an alternative tool to provide higher tax revenue for governments as well as a way to establish a market of relatively reasonable prices. However, this research is still within the domain of Academia and as such, it has not yet translated into tangible guides to policy. Thus, consumption of marijuana in most countries around the globe is still prohibited and driven to the underground market. This research examines historical data from Prohibition of alcohol in the United States in order to answer the extent to which the overall costs of prohibition outstripped the benefits of forced reduction in consumption. It will also analyze the economic benefits and spillover effects from marijuana legalization in society. As such, the research question will be tackled by drawing upon two main channels for generating revenue for the government, i.e. reduction in government expenditure on marijuana law enforcement and potential revenue from introduction of a marijuana tax. In order to do so, the study will identify the effect of marijuana prohibition/legalization on government budgets—taxing and regulating it à la tobacco or alcohol—as well as its direct costs of enforcement. The conclusions address the policy recommendations regarding a more effective reduction in marijuana consumption through legalization, taxation and education. |
| Supervisor | Ratfai, Attila |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2014/kovic_nikola.pdf |
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