Learning by Brewing: Homebrewing Legalization and the Brewing Industry

In 1978, H.R. 1337 was signed into Federal law allowing for the home production of beer at the national level forever changing the U.S. brewing industry. Like the repeal of Prohibition, states were granted the right to enact their own homebrewing laws, resulting in a heterogeneous rollout of legalized homebrewing. This research examines the relationship between homebrewing legislation and the growth of the beer industry across the United States, and finds that enacted legislation has had a significant effect on the structure and growth of the brewing industry. ( JEL L51, N42, Q18)