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The Economic Impact of Smoke‐Free Policies on Restaurants, Cafés, and Bars: Panel Data Estimates From European Countries
Author(s) -
Pieroni Luca,
Salmasi Luca
Publication year - 2017
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/pam.22016
Subject(s) - panel data , enforcement , hospitality , balance (ability) , balance sheet , revenue , legislation , business , hospitality industry , tobacco industry , public economics , economics , finance , tourism , econometrics , medicine , political science , physical medicine and rehabilitation , law
In this paper, we investigate the extent to which the economic outcomes of restaurants, bars, and cafés have been affected by the introduction of anti‐smoking regulations in Europe. We use an unexploited panel database to collect a comprehensive set of information on financial indicators regarding the balance sheets of private and public companies in various economic sectors. The results show that smoke‐free policies did not significantly affect the firms’ economic performance, irrespective of the balance sheet indicators analyzed. Moreover, the results are robust to various econometric specifications and suggest that the recent enforcement of anti‐smoking legislation in Europe has improved public health without a corresponding negative impact on revenues and employment in the hospitality industry.