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dc.contributor.authorAdda, Jeromeen_US
dc.contributor.authorBerlinski, Samuelen_US
dc.contributor.authorBhaskar, V.en_US
dc.contributor.authorMachin, Stephenen_US
dc.date.accessioned2010-02-23en_US
dc.date.accessioned2011-07-04T09:18:59Z-
dc.date.available2011-07-04T09:18:59Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/47474-
dc.description.abstractThis paper analyzes the effects of a ban on smoking in public places upon firms and consumers. It presents a theoretical model and tests its predictions using unique data from before and after the introduction of smoking bans in the UK. Cigarette smoke is a public bad, and smokers and non-smokers differ in their valuation of smoke-free amenities. Consumer heterogeneity implies that the market equilibrium may result in too much uniformity, whereas social optimality requires a mix of smoking and non-smoking pubs (which can be operationalized via licensing). If the market equilibrium has almost all pubs permitting smoking (as is the case in the data) then a blanket ban reduces pub sales, profits, and consumer welfare. We collect survey data from public houses and find that the Scottish smoking ban (introduced in March 2006) reduced pub sales and harmed medium run profitability. An event study analysis of the stock market performance of pub-holding companies corroborates the negative effects of the smoking ban on firm performance.en_US
dc.language.isoengen_US
dc.publisherInst. for Fiscal Studies Londonen_US
dc.relation.ispartofseriesIFS working papers 09,13en_US
dc.subject.jelI18en_US
dc.subject.jelH23en_US
dc.subject.jelL51en_US
dc.subject.jelL81en_US
dc.subject.ddc330en_US
dc.subject.keywordregulationen_US
dc.subject.keywordsmoking banen_US
dc.subject.keywordmarket provision of qualityen_US
dc.subject.keywordsalesen_US
dc.subject.keywordpricesen_US
dc.subject.keywordprofitabilityen_US
dc.subject.keywordstock market performanceen_US
dc.subject.stwRauchenen_US
dc.subject.stwGesellschaftliches Bewusstseinen_US
dc.subject.stwGastronomieen_US
dc.subject.stwUnternehmensentwicklungen_US
dc.subject.stwGro├čbritannienen_US
dc.titleMarket regulation and firm performance: the case of smoking bans in the UKen_US
dc.typeWorking Paperen_US
dc.identifier.ppn607854502en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
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