The Highs and the Lows: Recreational Marijuana Laws and Mental Health Treatment

Published in Health Economics, 2023

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Recreational marijuana laws (RMLs) continue to grow in popularity, but the effects on mental health treatment are unclear. This paper uses an event-study within a difference-in-differences framework to study the short-run impact of state RMLs on admissions into mental health treatment facilities. The results indicate that shortly after a state adopts an RML, they experience a decrease in the average number of mental health treatment admissions. The findings are driven by white, Black, and Medicaid-funded admissions and are consistent for both male and female admissions. The results are robust to alternative specifications and sensitivity analysis.

Ortega, Alberto. “The highs and the lows: Recreational marijuana laws and mental health treatment.” Health Economics (2023).