The local amenities effect of Prohibition

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 increased investment due to a land price channel. In equilibrium, the amenity change disproportionately attracted immigrants and African-Americans.

That is from a new paper by Greg Howard and Arianna Ornaghi, revise and resubmit at Journal of Economic History.  Arianna is on the job market from MIT, here is her job market paper and broader portfolio.  Here is her paper on civil service reforms for U.S. police departments.

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