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

Luca, Pieroni and Pierluigi, Daddi and Luca, Salmasi (2013): Impact of Italian smoking ban on business activity of restaurants, cafès and bars.

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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.

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