The Over Time Impacts of Smoke Free Air Ordinances in Texas

We examine an untested hypothesis that posits that null results in early studies examining the economic impacts of smoking bans were driven by sample selection. Early adopters could better absorb the shock of bans, but among worse selected late adopters bans would adversely impact bars and restaurants. We exploit variation in the timing of ban institution among Texas municipalities and track their impact over time. We find similar adjustments trajectories between late and early adopters, but late adopters appear unaffected by bans in the long-term. Consistent with earlier studies, bans do not significantly affect bar and restaurant sales or establishment level alcohol tax expenditures.Institutional subscribers to the NBER working paper series, and residents of developing countries may download this paper without additional charge at www.nber.org.