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

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