@article{HowardOrnaghi, author = {Howard, Greg and Ornaghi, Arianna}, title = {Closing Time: The Local Equilibrium Effects of Prohibition}, series = {Journal of Economic History}, volume = {81}, journal = {Journal of Economic History}, number = {3}, doi = {10.1017/S0022050721000346}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:b1570-opus4-40818}, pages = {792 -- 830}, abstract = {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.}, language = {en} }