The Impact of Smoking Bans on Bar and Restaurant Values

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Michael Allgrunn Christopher C. Douglas

Abstract

The state of Florida implemented an indoor smoking ban in 2003 that exempted bars. Using a data set containing the sales price of bars and restaurants in Florida that spans 1999-2011, we utilize a difference-in-difference framework to examine whether or not a smoking ban impacts the value of bars and restaurants and in what direction. We find that the value of restaurants decreased following the smoking ban, while the value of bars increased. These results suggest that a smoking ban has a negative impact on a business’ value. (D23, H75, I18)

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