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Impact of Italian smoking ban on business activity of restaurants, cafès and bars

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  • Luca, Pieroni
  • Pierluigi, Daddi
  • Luca, Salmasi

Abstract

In this paper, we estimate the economic impact of the Italian smoking ban of 2005 on some activities of the catering sector. We use the quasi-experimental design induced by the introduction of the smoking ban in Italy to compare sales, profits and employment in cafès and restaurants located in the treatment area relative to a control group in similar economies such as Spain and France, where no ban had yet been imposed. We selected a large sample of firms in these three countries from a unique European panel dataset, which collects comparable financial indicators extracted from balance sheets. Our study indicates that the Italian smoking ban had a slight negative impact on sales in caf´es and restaurants but had no effect on profits, earnings or employment.

Suggested Citation

  • Luca, Pieroni & Pierluigi, Daddi & Luca, Salmasi, 2013. "Impact of Italian smoking ban on business activity of restaurants, cafès and bars," MPRA Paper 47369, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:47369
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    References listed on IDEAS

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    1. Pieroni, Luca & Chiavarini, Manuela & Minelli, Liliana & Salmasi, Luca, 2013. "The role of anti-smoking legislation on cigarette and alcohol consumption habits in Italy," Health Policy, Elsevier, vol. 111(2), pages 116-126.
    2. Buonanno, Paolo & Ranzani, Marco, 2013. "Thank you for not smoking: Evidence from the Italian smoking ban," Health Policy, Elsevier, vol. 109(2), pages 192-199.
    3. Ran Abramitzky & Victor Lavy, 2014. "How Responsive Is Investment in Schooling to Changes in Redistributive Policies and in Returns?," Econometrica, Econometric Society, vol. 82(4), pages 1241-1272, July.
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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. Sameem, Sediq, 2020. "Are U.S. lung cancer mortality rates converging?," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 190-197.
    3. 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.
    4. Nikaj, Silda & Miller, Joshua J. & Tauras, John A., 2017. "Exploring heterogeneity in the impact of smoking bans among early and late adopters," Economics Letters, Elsevier, vol. 155(C), pages 164-167.

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    More about this item

    Keywords

    Smoking ban; difference-in-differences; cafè and restaurant revenues;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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