Smoking in Restaurants: A Reply to David Henderson
â€œSmoking in Restaurants: Who Best Sets the House Rules?â€ by David Henderson, Econ Journal Watch 4(3), is a comment on our paper â€œSmokefree Laws Increase Restaurant Values,â€ Contemporary Economic Policy 22(4). Henderson asserts that restaurant owners can internalize all of the costs related to second hand smoke. There is, however, no mechanism by which a restaurant owner can compensate a patron for any health costs related to second hand smoke, therefore it is not possible for the owner to have completely internalized the costs of the externality imposed by the smoker. Henderson also notes that because we use a ratio (the dependent variable was the Price to Sales ratio (P/S)), the positive effect we found could just as easily come from a reduction in sales as an increase in price. This statement demonstrates a lack of knowledge of the previous literature that has repeatedly found either no or positive effect on sales associated with smokefree laws.
Volume (Year): 4 (2007)
Issue (Month): 3 (September)
|Contact details of provider:|| Postal: Enterprise Hall, Room 354, 4400 University Drive, 3G4 Fairfax, VA 22030|
Phone: (703) 993-1151
Web page: https://econjwatch.org/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ejw:journl:v:4:y:2007:i:3:p:292-295. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jason Briggeman)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.