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Much Ado About Nothing? Smoking Bans and Germany's Hospitality Industry

Author

Listed:
  • Michael Kvasnicka

    () (Labor Markets, Education, Population - RWI)

  • Harald Tauchmann

    () (Health Economics - RWI)

Abstract

Over the last 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, 2011. "Much Ado About Nothing? Smoking Bans and Germany's Hospitality Industry," Post-Print hal-00719873, HAL.
    • Handle: RePEc:hal:journl:hal-00719873
    DOI: 10.1080/00036846.2011.591739
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00719873
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    References listed on IDEAS

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    1. Kvasnicka, Michael & Tauchmann, Harald, 2010. "Eine Befragung von Gastronomiebetrieben zur Einführung von Rauchverboten: Deskriptive Ergebnisse," RWI Materialien 58, RWI - Leibniz-Institut für Wirtschaftsforschung.
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    Cited by:

    1. repec:wly:hlthec:v:27:y:2018:i:11:p:1738-1753 is not listed on IDEAS
    2. 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.
    3. 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.
    4. 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.
    5. 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).
    6. 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.
    7. 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.
    8. 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.
    9. Pfeifer, Gregor & Reutter, Mirjam & Strohmaier, Kristina, 2017. "Goodbye smokers' corner: Health effects of school smoking bans," Ruhr Economic Papers 678, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. 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.

    More about this item

    Keywords

    Social Sciences & Humanities;

    JEL classification:

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

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