Economic Impact of the Passage of the Medical Marijuana Law in the State of Florida

22 Pages Posted: 4 Nov 2018

See all articles by Vakaramoko Diaby

Vakaramoko Diaby

University of Florida

Vassiki Sanogo

University of Florida

Hong Xiao

University of Florida

Xiang Zhong

University of Florida - College of Engineering

Jeffrey Dykes

Regional Economic Models, Inc. (REMI)

Chris Judson

Regional Economic Models, Inc. (REMI)

Date Written: October 12, 2018

Abstract

In 2016, Florida Governor signed House Bill 307 that expanded the State's Right to Try Act to include medical marijuana. However, two years after this initiative, little is known about the economic impact of legal medical marijuana use (MMU) on the State of Florida. The goal of this research is to forecast the total economic impact arising from MMU on Florida, from 2017 to 2025, using a dynamic input-output model. Input data for the model were obtained from the Florida Office of Medical Marijuana Use. The economic impact of MMU was measured in terms of gross state product, disposable personal income, migration, labor force, employment, and salaries and wages. The legalization of medical marijuana in Florida is associated with an increase in all the economic indicators in 2017. A positive trend for these indicators is observed from 2017 to 2025 except for migration with a negative trend starting in 2019.

Keywords: Medical Marijuana, Legalization, Florida, Input-Output Modeling, Dynamic Macroeconomic Analysis

JEL Classification: H71, R590, I18

Suggested Citation

Diaby, Vakaramoko and Sanogo, Vassiki and Xiao, Hong and Zhong, Xiang and Dykes, Jeffrey and Judson, Chris, Economic Impact of the Passage of the Medical Marijuana Law in the State of Florida (October 12, 2018). Available at SSRN: https://ssrn.com/abstract=3265254 or http://dx.doi.org/10.2139/ssrn.3265254

Vakaramoko Diaby (Contact Author)

University of Florida ( email )

PO Box 117165, 201 Stuzin Hall
Gainesville, FL 32610-0496
United States

Vassiki Sanogo

University of Florida ( email )

United States

Hong Xiao

University of Florida ( email )

PO Box 117165, 201 Stuzin Hall
Gainesville, FL 32610-0496
United States

Xiang Zhong

University of Florida - College of Engineering ( email )

United States

Jeffrey Dykes

Regional Economic Models, Inc. (REMI) ( email )

1717 K Street, Suite 900
D.C., WA 20006
United States

Chris Judson

Regional Economic Models, Inc. (REMI) ( email )

1717 K Street, Suite 900
D.C., WA 20006
United States

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