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The economic incidence of smoking laws

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  • John Dunham
  • Michael Marlow

Abstract

Although laws restricting smoking in restaurants are becoming commonplace, most research has focused on either the health benefits that laws may provide customers and workers or whether laws harm owners. But while smoking laws may directly alter profits, owners may alter prices, output, and other business attributes in ways that affect the welfare of customers and workers. This study examines whether restaurant and bar owners alter prices, entertainment, hours of operation and other business attributes in response to local smoking laws. Substantial support is found for these attribute changes in the Wisconsin hospitality industry. One implication is that an overall assessment of the desirability of smoking laws should consider economic effects imposed on owners, customers and workers, as well as health benefits that follow laws.

Suggested Citation

  • John Dunham & Michael Marlow, 2003. "The economic incidence of smoking laws," Applied Economics, Taylor & Francis Journals, vol. 35(18), pages 1935-1942.
    • Handle: RePEc:taf:applec:v:35:y:2003:i:18:p:1935-1942
    DOI: 10.1080/00036840310001628765
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    References listed on IDEAS

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    1. Boyes, William J & Marlow, Michael L, 1996. "The Public Demand for Smoking Bans," Public Choice, Springer, vol. 88(1-2), pages 57-67, July.
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    4. Glantz, S.A. & Smith, L.R.A., 1994. "The effect of ordinances requiring smoke-free restaurants on restaurant sales," American Journal of Public Health, American Public Health Association, vol. 84(7), pages 1081-1085.
    5. J. Dunham & ML. Marlow, 2000. "Smoking laws and their differential effects on restaurants, bars, and taverns," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 326-333, July.
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    Cited by:

    1. Richard Thalheimer & Mukhtar M. Ali, 2008. "The Demand For Casino Gaming With Special Reference To A Smoking Ban," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 273-282, April.
    2. Steven G. Medema, 2020. "The Coase Theorem at Sixty," Journal of Economic Literature, American Economic Association, vol. 58(4), pages 1045-1128, December.
    3. Michael Kvasnicka & Harald Tauchmann, 2012. "Much ado about nothing? Smoking bans and Germany's hospitality industry," Applied Economics, Taylor & Francis Journals, vol. 44(35), pages 4539-4551, December.
    4. Bauer, Christian & Lingens, Jörg, 2009. "Smoking Bans in the Presence of Social Interaction," Discussion Papers in Economics 10593, University of Munich, Department of Economics.
    5. Renaud Foucart, 2017. "Group Consumption and Product Diversity: The Case of Smoking Bans," Journal of Industrial Economics, Wiley Blackwell, vol. 65(3), pages 559-584, September.
    6. Michael L. Marlow, 2008. "Honestly, Who Else Would Fund Such Research? Reflections of a Non-Smoking Scholar," Econ Journal Watch, Econ Journal Watch, vol. 5(2), pages 240-268, May.

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