TY - JOUR A1 - Howard, Greg A1 - Ornaghi, Arianna T1 - Closing Time: The Local Equilibrium Effects of Prohibition T2 - Journal of Economic History N2 - 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 increased investment due to a land price channel. In equilibrium, the policy change disproportionately attracted immigrants and African-Americans. Y1 - 2021 UR - https://opus4.kobv.de/opus4-hsog/frontdoor/index/index/docId/4081 UR - https://nbn-resolving.org/urn:nbn:de:kobv:b1570-opus4-40818 N1 - "This is a post-peer-review, pre-copyedit version of an article published in Journal of Economic History. The final authenticated version is available online at: https://doi.org/10.1017/S0022050721000346 VL - 81 IS - 3 SP - 792 EP - 830 ER -