Flutterby™! : Border Effects

Oregon Office of Economic Analysis: Fun Friday: More Marijuana Border Effects

Second, even if we expect — and get — border effects, the sales in counties along the Idaho border were much stronger than I anticipated. Obviously recreational marijuana is not legal in Idaho, but even after throwing the data into a rough border tax model that accounts for incomes, number of retailers, tax rates and the like, there remains a huge border effect. Roughly speaking, about 75% of Oregon sales and more like 35% of Washington sales in counties along the Idaho border appear due to the border effect itself and not local socio-economic conditions. Furthermore, and in things you cannot make up, Oregon sales per adult along the Idaho border are 420% the statewide average.