Closing Time: The Local Equilibrium Effects of Prohibition

• 成果类型: Article
• 署名作者: University of Illinois System; University of Illinois Urbana-Champaign; University of Warwick
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050721000346
• 发表日期: 2021
• 页码: 792-830
• 关键词: housing values evidence; UNITED-STATES; alcohol; Tiebout; IMPACT; credit; consumption; COMPETITION; migration; price

摘要

How do different local policies in a federal system affect local land values, production, and sorting? We study the question exploiting a large historical policy change: U.S. Alcohol Prohibition in the early twentieth century. Comparing same- state early and late adopters of county dry laws in a difference-in-differences design, we find that early Prohibition adoption increased population and farm real estate values. Moreover, we find strong effects on farm productivity consistent with increased investment due to a land price channel. In equilibrium, the policy change disproportionately attracted immigrants and African-Americans.