Research on Monday Rotterdam

Speaker(s)
Dan Rees (University of Colorado, Denver, United States)
Date
Monday, March 16, 2015
Location
Rotterdam

Drawing on county-level data from Kansas for the period 1977-2011, we examine whether plausibly exogenous increases in the number of establishments licensed to sell alcohol by the drink are related to violent crime. During this period, 86 out of 105 counties in Kansas voted to legalize the sale of alcohol to the general public for on-premises consumption. We provide evidence that these counties experienced substantial increases in the total number of establishments with on-premises liquor licenses (e.g., bars and restaurants). Using legalization as an instrument, we show that issuing an on-premises liquor license is associated with 4 to 5 additional violent crimes per year. Reduced-form estimates suggest that legalizing the sale of alcohol to the general public for on-premises consumption is associated with a 10 to 25 percent increase in violent crime. (Coauthors D.M. Anderson, B. Crost.)