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Exploring heterogeneity in the impact of smoking bans among early and late adopters

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  • Nikaj, Silda
  • Miller, Joshua J.
  • Tauras, John A.

Abstract

This paper exploits variation in the timing of smoking bans in bars and restaurants, and examines whether sample selection drove the null results of earlier economic impact studies. An untested hypothesis posits that early adopters could better absorb the shock of bans, but among worse selected late adopters, bans would adversely impact bar and restaurant sales. We are the first U.S. study to use administrative tax records from roughly 28,000 establishments. We find similar adjustment trajectories between late and early adopters. Overall bans do not produce a significant adverse economic impact.

Suggested Citation

  • Nikaj, Silda & Miller, Joshua J. & Tauras, John A., 2017. "Exploring heterogeneity in the impact of smoking bans among early and late adopters," Economics Letters, Elsevier, vol. 155(C), pages 164-167.
    • Handle: RePEc:eee:ecolet:v:155:y:2017:i:c:p:164-167
    DOI: 10.1016/j.econlet.2017.04.002
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    References listed on IDEAS

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    2. Pieroni, L. & Daddi, P. & Salmasi, L., 2013. "Impact of Italian smoking ban on business activity of restaurants, cafés and bars," Economics Letters, Elsevier, vol. 121(1), pages 70-73.
    3. Odermatt, Reto & Stutzer, Alois, 2015. "Smoking bans, cigarette prices and life satisfaction," Journal of Health Economics, Elsevier, vol. 44(C), pages 176-194.
    4. Jérôme Adda & Samuel Berlinski & Stephen Machin, 2012. "Market Regulation and Firm Performance: The Case of Smoking Bans in the United Kingdom," Journal of Law and Economics, University of Chicago Press, vol. 55(2), pages 365-391.
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    Cited by:

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    More about this item

    Keywords

    Economic impact; Smoking bans; Public policy; Regulation;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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