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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Western Economic Association International in its journal Contemporary Economic Policy.
Volume (Year): 22 (2004)
Issue (Month): 4 (October)
Contact details of provider:
Postal: 18830 Brookhurst Street, Suite 304, Fountain Valley, CA 92708 USA
Web page: http://www.blackwellpublishing.com/journal.asp?ref=1074-3529
More information through EDIRC
Find related papers by JEL classification:
- 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
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Gabriel Ahlfeldt & Wolfgang Maennig, 2009.
"Impact of Non-Smoking Ordinances on Hospitality Revenues: The Case of Germany,"
026, Chair for Economic Policy, University of Hamburg.
- 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.
- Jerome Adda & Samuel Berlinski & V. Bhaskar & Steve Machin, 2009.
"Market regulation and firm performance: the case of smoking bans in the UK,"
IFS Working Papers
W09/13, Institute for Fiscal Studies.
- 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.
- 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.
- 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.
- Annette Hofmann & Martin Nell, 2012. "Smoking bans and the secondhand smoking problem: an economic analysis," The European Journal of Health Economics, Springer, vol. 13(3), pages 227-236, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.