Smoke-free Ordinances Increase Restaurant Profit and Value
AbstractThis study estimates the value added to a restaurant by a smoke-free policy using regression analysis of the purchase price of restaurants as a function of the presence of a smoke-free law and other control variables. There was a median increase of 16% (interquartile range 11% to 25%) in the sale price of a restaurant in a jurisdiction with a smoke-free law compared to a comparable restaurant in a community without such a law. This result indicates that contrary to claims made by opponents of smoke-free laws, these laws are associated with an increase in restaurant profitability. (JEL "I120", "H000", "D780") Copyright 2004 Western Economic Association International.
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Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 22 (2004)
Issue (Month): 4 (October)
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- I12 - Health, Education, and Welfare - - Health - - - Health Production
- H00 - Public Economics - - General - - - General
- D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
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- Gabriel M. Ahlfeldt & Wolfgang Maennig, 2010.
"Impact of Non-smoking Ordinances on Hospitality Revenues: The Case of Germany,"
Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik),
Justus-Liebig University Giessen, Department of Statistics and Economics, vol. 230(5), pages 506-521, October.
- Gabriel Ahlfeldt & Wolfgang Maennig, 2009. "Impact of Non-Smoking Ordinances on Hospitality Revenues: The Case of Germany," Working Papers 026, Chair for Economic Policy, University of Hamburg.
- Reichmann, Gerhard & Sommersguter-Reichmann, Margit, 2012. "The Austrian Tobacco Act in practice – Analysing the effectiveness of partial smoking bans in Austrian restaurants and bars," Health Policy, Elsevier, vol. 104(3), pages 304-311.
- Jerome Adda & Samuel Berlinski & V. Bhaskar & Steve Machin, 2009.
"Market regulation and firm performance: the case of smoking bans in the UK,"
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- Jerome Adda & Samuel Berlinski & V. Bhaskar & Stephen Machin, 2011. "Market Regulation and Firm Performance: The Case of Smoking Bans in the UK," Economics Working Papers ECO2011/09, European University Institute.
- Silvia Tiezzi, 2009. "The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings," Department of Economics University of Siena 570, Department of Economics, University of Siena.
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