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How do smoking bans in restaurants affect restaurant and at-home alcohol consumption?

Author

Listed:
  • Aycan Koksal

    (Cleveland State University)

  • Michael K. Wohlgenant

    (North Carolina State University)

Abstract

In this paper, we analyze the impact of smoking bans on restaurant and at-home alcohol consumptions in a rational addiction model using a pseudo-panel data approach. Cigarette consumption, restaurant alcohol consumption and at-home alcohol consumption fit well with the rational addiction model. Our results suggest that cigarettes and alcohol reinforce each other in consumption, but consumers increase restaurant alcohol consumption when cigarette prices increase. We find that smoking bans increase restaurant alcohol consumption, but decrease at-home alcohol consumption. After a smoking ban is imposed, nonsmokers are likely to stay longer at restaurants and consume more alcohol. On the other hand, when smokers are not allowed to smoke in restaurants, they are likely to compensate for it by increasing restaurant alcohol consumption. As smoking bans increase social drinking habits, a decrease in at-home alcohol consumption is observed. Our results suggest that smoking bans in restaurants or bars must be accompanied by decreased blood alcohol concentration limits and increased road controls so that negative externalities such as fatalities due to drunk driving can be avoided.

Suggested Citation

  • Aycan Koksal & Michael K. Wohlgenant, 2016. "How do smoking bans in restaurants affect restaurant and at-home alcohol consumption?," Empirical Economics, Springer, vol. 50(4), pages 1193-1213, June.
    • Handle: RePEc:spr:empeco:v:50:y:2016:i:4:d:10.1007_s00181-015-0986-z
    DOI: 10.1007/s00181-015-0986-z
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    Cited by:

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    2. Costa-Font, Joan & Salmasi, Luca & Zaccagni, Sarah, 2021. "More Than a Ban on Smoking? Behavioural Spillovers of Smoking Bans in the Workplace," IZA Discussion Papers 14299, Institute of Labor Economics (IZA).
    3. Fleissig, Adrian R. & Swofford, James L., 2023. "The impact of Brexit on U.K. habits for expenditure on imports and consumption," International Review of Economics & Finance, Elsevier, vol. 88(C), pages 196-203.
    4. Cornelia Chadi, 2022. "Smoking Bans, Leisure Time and Subjective Well-being," Journal of Happiness Studies, Springer, vol. 23(8), pages 3765-3797, December.
    5. Pryce, Robert, 2019. "The effect of the United Kingdom smoking ban on alcohol spending: Evidence from the Living Costs and Food Survey," Health Policy, Elsevier, vol. 123(10), pages 936-940.
    6. Adrian R. Fleissig & James L. Swofford, 2023. "Habit persistence in assets demand," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 975-985, January.

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    More about this item

    Keywords

    Cigarette; Alcohol; Smoking ban; Rational addiction; Pseudo-panel;
    All these keywords.

    JEL classification:

    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I1 - Health, Education, and Welfare - - Health

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