We(ed) The People of the United States: A Treatment Effects Model of the Recreational Legalization of Cannabis

Cannabis legalization has changed dramatically in the United States recently, and its potential impact remains unclear. Using survey data in two endogenous treatment regression models, we test (1) how socioeconomic factors influence cannabis use and perception of risk, (2) how those factors affect the likelihood of recreational legalization, and (3) how legalization affects usage and risk perception. Results are intuitive but surprising, showing strong but selective demographic effects. The average treatment effect of recreational legalization is polarizing, showing increased risk perception alongside increased annual consumption of cannabis.