Abstract

http://ssrn.com/abstract=2650484
 


 



Breaking Bad: Are Meth Labs Justified in Dry Counties?


Jose M. Fernandez


University of Louisville - Department of Economics; University of Louisville - College of Business and Public Administration

Stephan Gohmann


University of Louisville - College of Business - Department of Economics

Joshua C. Pinkston


University of Louisville

August 25, 2015


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 using as instrumental variables data on religious affiliations in the 1930s, when most local-option votes took place. Alcohol prohibition status is influenced by the percentage of the population that is Baptist, consistent with the “bootleggers and Baptists” model. Our results suggest that the number of meth lab seizures in Kentucky would decrease by 24.4 percent if all counties became wet.

Number of Pages in PDF File: 37

Keywords: Alcohol prohibition, methamphetamine production, dry counties

JEL Classification: K42, I1, K32


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Date posted: August 26, 2015  

Suggested Citation

Fernandez, Jose M. and Gohmann, Stephan and Pinkston, Joshua C., Breaking Bad: Are Meth Labs Justified in Dry Counties? (August 25, 2015). Available at SSRN: http://ssrn.com/abstract=2650484 or http://dx.doi.org/10.2139/ssrn.2650484

Contact Information

Jose M. Fernandez
University of Louisville - Department of Economics ( email )
Louisville, KY 40292
United States
(502) 852-4861 (Phone)
HOME PAGE: http://louisville.edu/~jmfern02/
University of Louisville - College of Business and Public Administration ( email )
Louisville, KY 40292
United States
Stephan Gohmann
University of Louisville - College of Business - Department of Economics ( email )
Louisville, KY 40292
United States
Joshua C. Pinkston (Contact Author)
University of Louisville ( email )
Feedback to SSRN


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