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Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans

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  • Abel Brodeur

Abstract

This paper investigates the effects of local smoking bans on different outcomes using county and time variation over the last 20 years in the US. First, I find no evidence that local smoking bans in bars, restaurants and workplaces decrease the prevalence of smoking. The estimates are very small and not statistically significant. Well-being is also affected by these policies: public smoking bans make smokers who do not quit more satisfied with their life. I verify the robustness of this result throughout, and validate my findings with two distinct data sources. I discuss and test the mechanisms behind this seemingly paradoxical relationship. The evidence suggests that smokers adapt to bans since the impact on satisfaction is negative just before the implementation and positive afterward. Last, I found evidence that smokers do not favor the implementation of smoking bans. Yet, once they are exposed to a public smoking ban, they are less opposed to those policies. Together the evidence suggests that current smokers are time-inconsistent and benefit from smoking policies.

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Bibliographic Info

Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp1202.

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Date of creation: Apr 2013
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Handle: RePEc:cep:cepdps:dp1202

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Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Related research

Keywords: adaptation; addiction; smoking policies; subjective well-being; time-inconsistency;

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  1. Reto Odermatt & Alois Stutzer, 2013. "Smoking Bans, Cigarette Prices and Life Satisfaction," Working papers 2013/07, Faculty of Business and Economics - University of Basel.
  2. Andrew E. Clark & Fabrice Etilé, 2010. "Happy house: Spousal weight and individual well-being," PSE Working Papers halshs-00564836, HAL.
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  4. Jérôme Adda & Francesca Cornaglia, 2010. "The Effect of Bans and Taxes on Passive Smoking," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 1-32, January.
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  6. Clark, Andrew E. & Etilé, Fabrice, 2005. "Don't Give Up On Me Baby: Spousal Correlation in Smoking Behaviour," IZA Discussion Papers 1692, Institute for the Study of Labor (IZA).
  7. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
  8. Buddelmeyer, Hielke & Wilkins, Roger, 2005. "The Effects of Smoking Ban Regulations on Individual Smoking Rates," IZA Discussion Papers 1737, Institute for the Study of Labor (IZA).
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  11. Andrew E. Clark & Paul Frijters & Michael A. Shields, 2008. "Relative Income, Happiness, and Utility: An Explanation for the Easterlin Paradox and Other Puzzles," Journal of Economic Literature, American Economic Association, vol. 46(1), pages 95-144, March.
  12. Philippe Jehiel & Andrew Lilico, 2009. "Smoking Today and Stopping Tomorrow: A Limited Foresight Perspective," CESifo Working Paper Series 2603, CESifo Group Munich.
  13. Timothy Hinks and Andreas Katsaros & Andreas Katsaros, 2010. "Smoking Behaviour and Life Satisfaction: Evidence from the UK Smoking Ban," Working Papers 1019, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
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  15. Boyes, William J & Marlow, Michael L, 1996. " The Public Demand for Smoking Bans," Public Choice, Springer, vol. 88(1-2), pages 57-67, July.
  16. Federica Origo & Claudio Lucifora, 2009. "The effect of comprehensive smoking bans in European workplaces," CHILD Working Papers wp10_09, CHILD - Centre for Household, Income, Labour and Demographic economics - ITALY.
  17. Bruno S. Frey & Alois Stutzer, 2001. "What Can Economists Learn from Happiness Research?," CESifo Working Paper Series 503, CESifo Group Munich.
  18. Simon Moore, 2009. "The nonpecuniary effects of smoking cessation: happier smokers smoke less," Applied Economics Letters, Taylor & Francis Journals, vol. 16(4), pages 395-398.
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  22. Frederica Origo & Claudio Lucifora, 2010. "Smoking Bans in European Workplaces," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 8(3), pages 36-42, October.
  23. Graham, Carol & Eggers, Andrew & Sukhtankar, Sandip, 2004. "Does happiness pay?: An exploration based on panel data from Russia," Journal of Economic Behavior & Organization, Elsevier, vol. 55(3), pages 319-342, November.
  24. Daniel Kahneman & Alan B. Krueger, 2006. "Developments in the Measurement of Subjective Well-Being," Journal of Economic Perspectives, American Economic Association, vol. 20(1), pages 3-24, Winter.
  25. Hendrik Jürges, 2004. "The Welfare Costs of Addiction," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 124(3), pages 327-353.
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Cited by:
  1. Andrew Leicester & Peter Levell, 2013. "Anti-smoking policies and smoker well-being: evidence from Britain," IFS Working Papers W13/13, Institute for Fiscal Studies.
  2. Abel Brodeur & Sarah Flèche, 2013. "Where the streets have a name: income comparisons in the US," LSE Research Online Documents on Economics 51529, London School of Economics and Political Science, LSE Library.
  3. Reto Odermatt & Alois Stutzer, 2013. "Smoking Bans, Cigarette Prices and Life Satisfaction," Working papers 2013/07, Faculty of Business and Economics - University of Basel.
  4. repec:hal:wpaper:halshs-00795198 is not listed on IDEAS

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