Smoke-free ordinances increase restaurant profit and value
This study estimates the value added to a restaurant by a smoke-free policy using regression analysis of the purchase price of restaurants as a function of the presence of a smoke-free law and other control variables. There was a median increase of 16% (interquartile range 11% to 25%) in the sale price of a restaurant in a jurisdiction with a smoke-free law compared to a comparable restaurant in a community without such a law. This result indicates that contrary to claims made by opponents of smoke-free laws, these laws are associated with an increase in restaurant profitability.
|Date of creation:||01 Oct 2004|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.escholarship.org/repec/ctcre/|
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- J. Dunham & ML. Marlow, 2000. "Smoking laws and their differential effects on restaurants, bars, and taverns," Contemporary Economic Policy, Western Economic Association International, vol. 18(3), pages 326-333, 07.
- White, Halbert, 1980. "A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity," Econometrica, Econometric Society, vol. 48(4), pages 817-38, May.
- Weber, M D & Bagwell, DAS & Fielding, J E & Glantz, Stanton A. Ph.D., 2003. "Long term compliance with California's Smoke-Free Workplace law among bars and restaurants in Los Angeles County," University of California at San Francisco, Center for Tobacco Control Research and Education qt82m3j641, Center for Tobacco Control Research and Education, UC San Francisco.
When requesting a correction, please mention this item's handle: RePEc:cdl:ctcres:qt91w950j4. 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: (Lisa Schiff)
If references are entirely missing, you can add them using this form.