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

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  • Brodeur, Abel

    ()
    (Paris School of Economics)

Abstract

This paper investigates the effects of local smoking bans on different out-comes 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 this policy since the impact on satisfaction is negative just before the implementation and positive afterward. Last, I find 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 Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 7357.

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Length: 49 pages
Date of creation: Apr 2013
Date of revision:
Handle: RePEc:iza:izadps:dp7357

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

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References

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  1. Philippe Jehiel & Andrew Lilico, 2009. "Smoking Today and Stopping Tomorrow: A Limited Foresight Perspective," CESifo Working Paper Series 2603, CESifo Group Munich.
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  24. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, American Economic Association, vol. 96(4), pages 1013-1028, September.
  25. Frederica Origo & Claudio Lucifora, 2010. "Smoking Bans in European Workplaces," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, Ifo Institute for Economic Research at the University of Munich, vol. 8(3), pages 36-42, October.
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Cited by:
  1. Abel Brodeur & Sarah Flèche, 2013. "Where the streets have a name: income comparisons in the US," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 51529, London School of Economics and Political Science, LSE Library.
  2. repec:hal:wpaper:halshs-00795198 is not listed on IDEAS
  3. Odermatt, Reto & Stutzer, Alois, 2013. "Smoking Bans, Cigarette Prices and Life Satisfaction," IZA Discussion Papers 7177, Institute for the Study of Labor (IZA).
  4. Andrew Leicester & Peter Levell, 2013. "Anti-smoking policies and smoker well-being: evidence from Britain," IFS Working Papers, Institute for Fiscal Studies W13/13, Institute for Fiscal Studies.

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