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Much ado about nothing? Smoking bans and Germany's hospitality industry

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  • Michael Kvasnicka
  • Harald Tauchmann

Abstract

Over the past years, public smoking bans have been introduced in most European countries. Unlike elsewhere, in Germany such bans were introduced at state level at different points in time, which provides important intra-country regional variation that can be exploited to identify the effects of such bans on the hospitality industry. Using monthly data from a compulsory survey carried out by the German Federal Statistical Office, we study the short-run effects that these bans had on establishments’ sales. In contrast to the largely US-based literature, we find that smoke-free policies had a negative (yet moderate) effect on establishment sales. Closure rates of businesses in the hospitality industry, however, were not significantly affected by the introduction of state smoking bans.

Suggested Citation

  • 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.
  • Handle: RePEc:taf:applec:44:y:2012:i:35:p:4539-4551
    DOI: 10.1080/00036846.2011.591739
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    File URL: http://hdl.handle.net/10.1080/00036846.2011.591739
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    Cited by:

    1. Marti, Joachim & Schläpfer, Jörg, 2014. "The economic impact of Swiss smoking bans on the hospitality sector," Economics Letters, Elsevier, vol. 124(1), pages 136-139.
    2. Wissmann, Daniel, 2020. "Finally a Smoking Gun," Discussion Papers in Economics 73026, University of Munich, Department of Economics.
    3. Ahlfeldt Gabriel M. & Maennig Wolfgang, 2010. "Impact of Non-smoking Ordinances on Hospitality Revenues: The Case of Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(5), pages 506-521, October.
    4. Jaume García-Villar & Ángel López-Nicolás, 2015. "Who is afraid of smoking bans? An evaluation of the effects of the Spanish clean air law on expenditure at hospitality venues," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(8), pages 813-834, November.
    5. Gregor Pfeifer & Mirjam Reutter & Kristina Strohmaier, 2020. "Goodbye Smokers’ Corner: Health Effects of School Smoking Bans," Journal of Human Resources, University of Wisconsin Press, vol. 55(3), pages 1068-1104.
    6. Michael Kvasnicka & Thomas Siedler & Nicolas R. Ziebarth, 2018. "The health effects of smoking bans: Evidence from German hospitalization data," Health Economics, John Wiley & Sons, Ltd., vol. 27(11), pages 1738-1753, November.
    7. Harald Tauchmann & Silja Lenz & Till Requate & Christoph Schmidt, 2013. "Tobacco and alcohol: complements or substitutes?," Empirical Economics, Springer, vol. 45(1), pages 539-566, August.
    8. Daniel Kuehnle & Christoph Wunder, 2013. "The effects of smoking bans on self-assessed health: evidence from Germany," Working Papers 140, Bavarian Graduate Program in Economics (BGPE).
    9. Jaume Garcia Villar & Ángel López-Nicolás, 2014. "Who is afraid of the big bad ban? An evaluation of the effects of the Spanish clean air law on expenditure at hospitality venues," Economics Working Papers 1413, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 2014.
    10. Pryce, Robert, 2019. "The effect of the United Kingdom smoking ban on alcohol spending: Evidence from the Living Costs and Food Survey," Health Policy, Elsevier, vol. 123(10), pages 936-940.
    11. Kvasnicka, Michael, 2010. "Public Smoking Bans, Youth Access Laws, and Cigarette Sales at Vending Machines," Ruhr Economic Papers 173, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Stefan Boes & Joachim Marti & Johanna Catherine Maclean, 2015. "The Impact of Smoking Bans on Smoking and Consumer Behavior: Quasi‐Experimental Evidence from Switzerland," Health Economics, John Wiley & Sons, Ltd., vol. 24(11), pages 1502-1516, November.
    13. Daniel Kuehnle & Christoph Wunder, 2017. "The Effects of Smoking Bans on Self‐Assessed Health: Evidence from Germany," Health Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 321-337, March.

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    JEL classification:

    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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