期刊名称：IFS Working Papers / Institute for Fiscal Studies London
电子版ISSN：1742-0415
出版年度：2009
卷号：1
出版社：Institute for Fiscal Studies London
摘要：This 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.
