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

We estimate the economic impact of the Italian smoking ban of 2005 on the catering sector using a quasi-experimental design. Our study indicates that the Italian smoking ban had a slight negative impact on sales of cafés and restaurants but had no effect on profits, earnings, or employment. •We esti...

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Bibliographic Details
Published in:Economics letters 2013-10, Vol.121 (1), p.70-73
Main Authors: Pieroni, L., Daddi, P., Salmasi, L.
Format: Article
Language:English
Subjects:
Bans
Café and restaurant revenues
Difference-in-differences
Economic activity
Economic impact
Public policy
Restaurants
Smoking
Smoking ban
Smoking cessation
Studies
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Summary:We estimate the economic impact of the Italian smoking ban of 2005 on the catering sector using a quasi-experimental design. Our study indicates that the Italian smoking ban had a slight negative impact on sales of cafés and restaurants but had no effect on profits, earnings, or employment. •We estimate the effect of smoking ban on revenues of restaurants and bars.•We use a difference in differences (DiD) estimator.•We use official balance sheet data to account for measurement errors.•We find no significant effect on profits and employees and a slight negative effect on sales.
ISSN:0165-1765
1873-7374
DOI:10.1016/j.econlet.2013.07.008