Consumption of cannabis for recreational purposes

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Questions from past term exam.

In October of 2018, the consumption of cannabis for recreational purposes became legal in Canada. Some critics are concerned that this may lead to an increase in road accidents due to impaired driving. Suppose that, in October of 2019 (one year after legalization), you are asked to evaluate whether cannabis legalization did or did not lead to an increase in the number of road accidents. What kind of empirical strategy could you adopt in order to answer this question? Which important assumption would be required in order for your analysis to identify the causal effect of cannabis legalization on road accidents? (Hint: While cannabis became legal in Canada, it remains illegal in many other parts of the world.)

Reference no: EM132415499

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