How do smoking bans in restaurants affect restaurant and at-home alcohol consumption?

Aycan Koksal () and Michael Wohlgenant ()
Additional contact information
Aycan Koksal: Cleveland State University

Empirical Economics, 2016, vol. 50, issue 4, No 2, 1193-1213

Abstract: Abstract In this paper, we analyze the impact of smoking bans on restaurant and at-home alcohol consumptions in a rational addiction model using a pseudo-panel data approach. Cigarette consumption, restaurant alcohol consumption and at-home alcohol consumption fit well with the rational addiction model. Our results suggest that cigarettes and alcohol reinforce each other in consumption, but consumers increase restaurant alcohol consumption when cigarette prices increase. We find that smoking bans increase restaurant alcohol consumption, but decrease at-home alcohol consumption. After a smoking ban is imposed, nonsmokers are likely to stay longer at restaurants and consume more alcohol. On the other hand, when smokers are not allowed to smoke in restaurants, they are likely to compensate for it by increasing restaurant alcohol consumption. As smoking bans increase social drinking habits, a decrease in at-home alcohol consumption is observed. Our results suggest that smoking bans in restaurants or bars must be accompanied by decreased blood alcohol concentration limits and increased road controls so that negative externalities such as fatalities due to drunk driving can be avoided.

Keywords: Cigarette; Alcohol; Smoking ban; Rational addiction; Pseudo-panel (search for similar items in EconPapers)
JEL-codes: D11 D12 I1 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://link.springer.com/10.1007/s00181-015-0986-z Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:50:y:2016:i:4:d:10.1007_s00181-015-0986-z

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

DOI: 10.1007/s00181-015-0986-z

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund

More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().