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

Luca Pieroni, Daddi Pierluigi and Luca Salmasi

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Smoking ban; difference-in-differences; cafè and restaurant revenues (search for similar items in EconPapers)
JEL-codes: I10 I18 (search for similar items in EconPapers)
Date: 2013-03-19
New Economics Papers: this item is included in nep-eur
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Journal Article: Impact of Italian smoking ban on business activity of restaurants, cafés and bars (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:47369

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