Economist's Article on Smoking Bans in the December Issue of Applied Economics says the economic cost of smoking restrictions is paid by restaurant customers as well as workers and owners.

December 31 2003--John Dunham and Associates is pleased to announce that the peer-reviewed journal Applied Economics (Volume 35, Number 18 / 15 December 2003) has just published the article "The Economic Incidence Of Smoking Laws" by John Dunham (John Dunham & Associates, 141 West 28th Street, New York, NY, 10001, USA) and Michael L. Marlow (College of Business, California Polytechnic State University, San Luis Obispo, CA 93407, USA).

An Abstract of the Article Follows:

Although laws restricting smoking in restaurants are becoming commonplace, most research has focused on either the health benefits that laws may provide customers and workers or whether laws harm owners. But while smoking laws may directly alter profits, owners may alter prices, output, and other business attributes in ways that affect the welfare of customers and workers. This study examines whether restaurant and bar owners modify prices, entertainment, hours of operation and other business attributes in response to local smoking laws. Substantial support is found for these attribute changes in the Wisconsin hospitality industry. One implication is that an overall assessment of the desirability of smoking laws should consider economic effects imposed on not just owners, but also customers and workers, as well as health benefits that follow laws.

The bottom line of this research is that the economic cost of smoking restrictions is paid by all restaurant customers, workers and owners.

Anyone wishing to receive a copy of the article "The Economic Incidence of Smoking Laws," by John Dunham and Michael Marlow should contact John Dunham and Associates at 212-239-2105. Visit John Dunham & Associates at http://www.guerrillaeconomics.com




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