Closing Time: The Local Equilibrium Effects of Prohibition

  title={Closing Time: The Local Equilibrium Effects of Prohibition},
  author={Greg Howard and A. Ornaghi},
  journal={The Journal of Economic History},
  pages={792 - 830}
How do different local policies in a federal system affect local land values, production, and sorting? We study the question exploiting a large historical policy change: U.S. Alcohol Prohibition in the early twentieth century. Comparing same- state early and late adopters of county dry laws in a difference-in-differences design, we find that early Prohibition adoption increased population and farm real estate values. Moreover, we find strong effects on farm productivity consistent with… 
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