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The Economic Impact of Michigan's Smoke-Free Indoor Air Quality Law

a PSC Research Project

Investigator:   Helen Levy

In December of 2009, Michigan amended its clean indoor air law to ban smoking in workplaces, including bars and restaurants. The ban took effect on May 1, 2010 amid widespread concern among bar and restaurant owners that the ban would be bad for business. Evidence from other states and localities suggests that smoking bans have no impact on economic outcomes. Studies using measures such as sales figures reported for tax purposes or employment reported to government agencies are much more likely to find no impact for bans than are studies using subjective outcomes such as restaurant owners' reports of how their business would be affected or was affected by a ban.

This project analyzes aggregate data for the state of Michigan from 2006 to 2011 to see whether restaurant and bar sales were lower after the ban took effect than would have been expected based on the historical sales trend. As well, the project analyzes the impact of the ban on cigarette sales and sales of Club Keno cards.

Funding Period: 08/01/2012 to 09/30/2012

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