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The Public Demand for Smoking Bans

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  • Boyes, William J
  • Marlow, Michael L

Abstract

Smoking bans are gaining widespread support in the United States and other countries. While supporters argue that bans are necessary to resolve market failures associated with negative externalities, the Coase Theorem predicts that, under various conditions, private markets internalize negative externalities. We examine the smoking issue within the framework of the Coase Theorem and hypothesize that smoking bans misallocate air space resources shared by smokers and nonsmokers. Because smoking bans shift ownership of scarce resources, they are also hypothesized to transfer income from one party (smokers) to another party (nonsmokers). Supporting evidence for these hypotheses is provided by an examination of a comprehensive smoking ban imposed in San Luis Obispo, CA. Copyright 1996 by Kluwer Academic Publishers

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 88 (1996)
Issue (Month): 1-2 (July)
Pages: 57-67

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Handle: RePEc:kap:pubcho:v:88:y:1996:i:1-2:p:57-67

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Web page: http://www.springerlink.com/link.asp?id=100332

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Cited by:
  1. Abel Brodeur, 2013. "Smoking, income and subjective well-being: evidence from smoking bans," LSE Research Online Documents on Economics 51536, London School of Economics and Political Science, LSE Library.
  2. Michael T. Owyang & E. Katarina Vermann, 2012. "Where there’s a smoking ban, there’s still fire," Review, Federal Reserve Bank of St. Louis, issue July, pages 265-286.
  3. Poutvaara, Panu & Siemers, Lars-H. R., 2008. "Smoking and social interaction," Journal of Health Economics, Elsevier, vol. 27(6), pages 1503-1515, December.
  4. Hanson, Robin, 2003. "Warning labels as cheap-talk: why regulators ban drugs," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2013-2029, September.
  5. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
  6. John Dunham & Michael Marlow, 2003. "The economic incidence of smoking laws," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1935-1942.

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