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

  • Koksal, Aycan
  • Wohlgenant, Michael K.

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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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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