Fernandez, José, Gohmann, Stephan, & Pinkston, Joshua C. (in press). Breaking bad in bourbon country: Does alcohol prohibition encourage methamphetamine production? Southern Economic Journal. doi:10.1002/soej.12262


This article examines the influence of local alcohol prohibition on the prevalence of methamphetamine labs. Using multiple sources of data for counties in Kentucky, we compare various measures of meth manufacturing in wet, moist, and dry counties. Our preferred estimates address the endogeneity of local alcohol policies by exploiting differences in counties’ religious compositions between the 1930s, when most local‐option votes took place, and recent years. Even controlling for current religious affiliations, religious composition following the end of national Prohibition strongly predicts current alcohol restrictions. We carefully examine the validity of our identifying assumptions, and consider identification under alternative assumptions. Our results suggest that the number of meth lab seizures in Kentucky would decrease by 35% if all counties became wet.

Beeks, J. C., & Lambert, Thomas. (2018). Addressing externalities: An externality factor tax-subsidy proposal. European Journal of Sustainable Development Research, 2(2), online. doi:10.20897/ejosdr/81573


Nature is losing the war against capitalism and needs us to come to her defense in a way that may seem counter-intuitive. We, humans, have our ways of doing things and natural processes follow their own courses, often distinctly foreign to our inclinations. Our modern-day business practices are designed for the short term, are self-centered, tending toward precision and inevitably leading to environmental destruction. Natural processes, on the other hand, are intended for the long term, are generous, are highly imprecise and almost always lead to flourishing ecological systems. While humankind produces primarily negative externalities, nature produces almost exclusively positive externalities or no externalities at all. This paper discusses a way that both negative and positive anthropogenic externalities can be used to encourage ‘good consumption’ and to discourage ‘bad consumption’ for the benefit of natural ecological systems, human societies, family units, and our future generations.

Posted in: Research Roundup


University of Louisville
College of Business
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Louisville, KY 40292
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The UofL College of Business is separately accredited by AACSB International (The Association to Advance Collegiate Schools of Business). Visit our Accreditation page for details.

University Accreditation:
Southern Association of Colleges and Schools Commission on Colleges (SACSCOC)



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