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This study analyzes the effect of the implementation of a Clean Indoor Air (CIA) policy—prohibiting smoking in public places—on bar revenues in Michigan. Previous studies have found that CIA policies have no significant effects on employment or market outcomes for restaurants and bars. Using liquor sales data obtained from Michigan's Liquor Control Commission, the effect of the CIA policy on Michigan bars is analyzed using a random coefficient mixed model with an auto-regressive residual structure. The CIA policy is found to have reduced monthly liquor sales by an average of 10-18% in the three months following the implementation of the smoking ban. [ABSTRACT FROM AUTHOR]