*Asistant Professor, University of Illinois at Chicago and the National Bureau of Economic Research; and Associate Professor, Kean College and the National Bureau of Economic Research. This is a revised version of a paper presented at the Western Economic Association International 64th Annual Conference, Lake Tahoe, Nev., June 21, 1989. The authors are indebted to Michael Grossman, seminar participants at the University of Illinois-Chicago, participants at the Midwest Economic Association Meetings, and two anonymous referees for helpful comments on earlier drafts of this paper.
CLEAN INDOOR AIR LAWS AND THE DEMAND FOR CIGARETTES
Article first published online: 2 JUL 2007
Contemporary Economic Policy
Volume 10, Issue 2, pages 72–83, April 1992
How to Cite
CHALOUPKA, F. J. and SAFFER, H. (1992), CLEAN INDOOR AIR LAWS AND THE DEMAND FOR CIGARETTES. Contemporary Economic Policy, 10: 72–83. doi: 10.1111/j.1465-7287.1992.tb00227.x
- Issue published online: 2 JUL 2007
- Article first published online: 2 JUL 2007
This paper empirically tests the effect of clean indoor air laws on smoking. Public place clean indoor air laws restrict cigarette smoking in public places such as restaurants. Private place clean air laws regulate smoking in private work places as well as in public places. This study uses a time series of cross sections of the 50 states of the United States and Washington, D.C., from 1975 through 1985, to estimate single equation and simultaneous equation models of cigarette demand. The single equation results indicate that both the public place law and the private work place law have a negative effect on cigarette demand. However, a test for endogeneity shows that the enactment of clean indoor air laws is a function of cigarette demand. Results from a simultaneous equations model indicate that the public place law has a significant negative impact on cigarette demand, while the work place law has no effect on cigarette demand. Although these results demonstrate that only states with low levels of smoking have passed work place clean air laws, the results do not imply that the level of smoking would not decrease if such a law were imposed in all states.