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How do Smoking Bans in Bars/Restaurants Affect Alcohol Consumption?

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  • Koksal, Aycan
  • Wohlgenant, Michael K.

Abstract

In this study, we employ a rational addiction framework to analyze the effects of smoking bans on alcohol consumption in bars/restaurants. We use pseudo panel data approach which has many advantages compared to panel data. Although cigarettes and alcohol are complements in consumption, our findings suggest that smoking bans in restaurants do not have a significant effect on the restaurant alcohol consumption. It is possible that smoking bans at restaurants cause a decrease in the restaurant alcohol consumption of smokers, but lead to an increase in the restaurant alcohol consumption of nonsmokers. If this is the case, the net effect of smoking bans on overall restaurant alcohol consumption would be zero. These results are just preliminary, and further analyses are required.

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File URL: http://purl.umn.edu/103600
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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103600.

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Date of creation: 2011
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Handle: RePEc:ags:aaea11:103600

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Related research

Keywords: cigarette; alcohol; smoking ban; rational addiction; pseudo panel; Demand and Price Analysis;

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Cited by:
  1. Koksal, Aycan & Wohlgenant, Michael, 2013. "Pseudo Panel Data Estimation Technique and Rational Addiction Model: An Analysis of Tobacco, Alcohol and Coffee Demands," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150457, Agricultural and Applied Economics Association.

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