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Economic activity, recurring operational impacts, direct expenditures, smoke-free


This report is the third in a series of studies examining the impact of the implementation of the smoke-free ordinance in Fayetteville, Arkansas in March of 2004. The ban on smoking in public places in Fayetteville provides an opportunity to scientifically investigate the economic impact of this change in public policy. By comparing pre-ban historical economic growth rates to post-ban growth rates both within the city of Fayetteville and in comparable communities, some measure of the impact can be developed. Variables of interest include hotel, motel, and restaurant (HMR) taxes, employment, and sales taxes. The changes in these variables need to be controlled for changes in other variables that affect economic activity like population growth and changes in gross domestic product.