The economic impact of a smoking ban in Columbia, Missouri: an analysis of sales tax data for the first year
Abstract: In January 2007, an ordinance took effect in Columbia, Missouri, banning smoking in all bars, restaurants, and workplaces. This paper analyzes data for sales tax collections at eating and drinking establishments from January 2001 through December 2007, including the first twelve months of the smoking ban. The analysis accounts for trends, seasonality, general business conditions, and weather. The findings suggest that the smoking ban has been associated with statistically significant losses in sales tax revenues at Columbia's bars and restaurants, with an average decline of approximately 3 to 4 percent. Businesses that serve only food show no statistically significant effects of the smoking ban. Those that serve food and alcohol, or alcohol only, show significant losses with estimates in the range of 6 to 11 percent (with the larger losses associated with bars). Some individual businesses within each category may have been unaffected, whereas others are likely to have incurred much greater losses.
File(s): File format is application/pdf http://research.stlouisfed.org/publications/red/2008/01/Pakko.pdf
Provider: Federal Reserve Bank of St. Louis
Part of Series: Regional Economic Development
Publication Date: 2008