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Smoking, income and subjective well-being: evidence from smoking bans

  • Abel Brodeur

This paper investigates the effects of local smoking bans on different outcomes 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 bans since the impact on satisfaction is negative just before the implementation and positive afterward. Last, I found 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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File URL: http://eprints.lse.ac.uk/51536/
File Function: Open access version.
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 51536.

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Length: 50 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:ehl:lserod:51536
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  23. Jérôme Adda & Francesca Cornaglia, 2006. "The Effect of Taxes and Bans on Passive Smoking," CEPR Discussion Papers 509, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  24. Frederica Origo & Claudio Lucifora, 2010. "Smoking Bans in European Workplaces," CESifo DICE Report, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 8(3), pages 36-42, October.
  25. Timothy Hinks and Andreas Katsaros & Andreas Katsaros, 2010. "Smoking Behaviour and Life Satisfaction: Evidence from the UK Smoking Ban," Working Papers 1019, Department of Accounting, Economics and Finance, Bristol Business School, University of the West of England, Bristol.
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