[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/ags/ncbuar/259741.html
   My bibliography  Save this paper

An Economic Analysis Of The 1983 Increase In The Federal Excise Tax On Cigarettes

Author

Listed:
  • Sumner, Daniel A.
  • Wohlgenant, Michael K.
Abstract
This report analyzes some likely effects of the recently passed federal cigarette tax increase. An equilibrium displacement model of the cigarette industry is developed. It includes relationships for / international trade in cigarettes and tobacco, federal cigarette taxes, and market interrelationships between cigarettes and tobacco and other inputs in cigarette manufacturing. A range of values for the demand ru1d supply elasticities is used to examine the sensitivity of the calculations. The major results of this study are: (a) the price of cigarettes will rise by almost the full amount of the tax increase; (b) the cigarette price increase will lead to about a 5 to 6 percent reduction in domestic sales of cigarettes, but some increase in quantities exported will offset domestic sales declines; (c) national distribution of cigarette sales will be altered slightly because relative price increases will be largest where current prices (and state tax rates) are lowest; (d) the effect of the tax increase on the price of domestic tobacco will be small -- even holding the production of tobacco constant -- because of the importance of international trade in cigarettes and tobacco as well as substitution with other inputs; and (e) a reduction of the real support price of tobacco in response to the tax increase will cause a fall in average tobacco quota lease rates.

Suggested Citation

  • Sumner, Daniel A. & Wohlgenant, Michael K., 1983. "An Economic Analysis Of The 1983 Increase In The Federal Excise Tax On Cigarettes," Department of Economics and Business - Archive 259741, North Carolina State University, Department of Economics.
    • Handle: RePEc:ags:ncbuar:259741
    DOI: 10.22004/ag.econ.259741
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/259741/files/magr-northcarolinastate-158.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.259741?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Lewit, Eugene M & Coate, Douglas & Grossman, Michael, 1981. "The Effects of Government Regulation on Teenage Smoking," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 545-569, December.
    2. James A. Seagraves, 1969. "Capitalized Values of Tobacco Allotments and the Rate of Return to Allotment Owners," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 51(2), pages 320-334.
    3. Lewit, Eugene M. & Coate, Douglas, 1982. "The potential for using excise taxes to reduce smoking," Journal of Health Economics, Elsevier, vol. 1(2), pages 121-145, August.
    4. Mann, Jitendar S., 1974. "Dynamics of the U.S. Tobacco Economy," Technical Bulletins 158590, United States Department of Agriculture, Economic Research Service.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Just, Richard E. & Lichtenberg, Erik & Zilberman, David, 1989. "The Interaction of Agricultural Policies and Health Regulation: The Case of Tobacco," Working Papers 197610, University of Maryland, Department of Agricultural and Resource Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. DeCicca, Philip & Kenkel, Donald & Mathios, Alan, 2000. "Putting Out The Fires: Will Higher Taxes Reduce Youth Smoking?," Working Papers 00-3, University of Aarhus, Aarhus School of Business, Department of Economics.
    2. John A. Tauras & Frank J. Chaloupka, 1999. "Price, Clean Indoor Air, and Cigarette Smoking: Evidence from the Longitudinal Data for Young Adults," NBER Working Papers 6937, National Bureau of Economic Research, Inc.
    3. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547.
    4. C Czart & RL Pacula & RJ Chaloupka & H Wechsler, 2001. "The Impact Of Prices And Control Policies On Cigarette Smoking Among College Students," Contemporary Economic Policy, Western Economic Association International, vol. 19(2), pages 135-149, April.
    5. Elena Raptou & Konstadinos Mattas & Constantinos Katrakilidis, 2009. "Investigating Smoker's Profile: The Role of Psychosocial Characteristics and the Effectiveness of Tobacco Policy Tools," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(2), pages 603-638, April.
    6. Tauras, John A., 2004. "Public policy and some-day smoking among adults," Journal of Applied Economics, Universidad del CEMA, vol. 7(1), pages 1-26, May.
    7. Théophile T Azomahou & Racky Baldé & Abdoulaye Diagne & Pape Yona Mané & Ibrahima Sory Kaba, 2019. "Public finances and tobacco taxation with product variety: Theory and application to Senegal and Nigeria," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-21, February.
    8. Martin Forster & Andrew M. Jones, "undated". "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York.
    9. Charles L. Baum, 2009. "The effects of cigarette costs on BMI and obesity," Health Economics, John Wiley & Sons, Ltd., vol. 18(1), pages 3-19, January.
    10. Jonathan Gruber & Jonathan Zinman, 2001. "Youth Smoking in the United States: Evidence and Implications," NBER Chapters, in: Risky Behavior among Youths: An Economic Analysis, pages 69-120, National Bureau of Economic Research, Inc.
    11. Jonathan Gruber, 2000. "Youth Smoking in the U.S.: Prices and Policies," NBER Working Papers 7506, National Bureau of Economic Research, Inc.
    12. Anindya Sen & Tony Wirjanto, 2010. "Estimating the impacts of cigarette taxes on youth smoking participation, initiation, and persistence: empirical evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1264-1280, November.
    13. Frank J. Chaloupka & John A. Tauras & Michael Grossman, 1997. "Public Policy and Youth Smokeless Tobacco Use," Southern Economic Journal, John Wiley & Sons, vol. 64(2), pages 503-516, October.
    14. Lovenheim, Michael F., 2008. "How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling," National Tax Journal, National Tax Association;National Tax Journal, vol. 61(1), pages 7-33, March.
    15. Liang, Lan PhD & Chaloupka, Frank J. PhD, 2001. "Differential Effects of Cigarette Price on Youth Smoking Intensity," University of California at San Francisco, Center for Tobacco Control Research and Education qt75x2s1j0, Center for Tobacco Control Research and Education, UC San Francisco.
    16. Eleni Raptou & Konstadinos Mattas & Efthimia Tsakiridou & Constantinos Katrakilidis, 2005. "Factors Affecting Cigarette Demand," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 11(3), pages 275-290, August.
    17. Jonathan Gruber & Jonathan Zinman, 2000. "Youth Smoking in the U.S.: Evidence and Implications," NBER Working Papers 7780, National Bureau of Economic Research, Inc.
    18. Hana Ross & Frank J. Chaloupka, 2003. "The effect of cigarette prices on youth smoking," Health Economics, John Wiley & Sons, Ltd., vol. 12(3), pages 217-230, March.
    19. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 211-222, Fall.
    20. Chaloupka, Frank J. & Wechsler, Henry, 1997. "Price, tobacco control policies and smoking among young adults," Journal of Health Economics, Elsevier, vol. 16(3), pages 359-373, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:ncbuar:259741. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://poole.ncsu.edu/index-exp.php/economics/economics .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.