Justin (Yaotian) Zhang

This paper studies cross-border market spillovers in the context of U.S. cannabis legalization. Using 269 geocoded dispensary locations in Illinois and a difference-in-differences design combined with spatial econometric methods, I examine how Missouri’s legalization of recreational cannabis affected sales patterns at Illinois border-region dispensaries. Preliminary findings suggest that the out-of-state sales share declined approximately 8.5 percentage points post-legalization, with dispensaries within 15 miles of state borders disproportionately affected. The results highlight how policy discontinuities at jurisdictional boundaries generate measurable economic spillovers.