[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/wly/soecon/v68y2001i1p156-165.html
   My bibliography  Save this article

Response by Adults to Increases in Cigarette Prices by Sociodemographic Characteristics

Author

Listed:
  • Matthew C. Farrelly
  • Jeremy W. Bray
  • Terry Pechacek
  • Trevor Woollery
Abstract
Cigarette excise taxes are widely viewed by health economists as an effective tool to reduce cigarette consumption. However, those opposed to increasing cigarette excise taxes often state that the taxes unfairly target certain segments of the population, notably the poor and minorities. Some of this opposition may have been fueled by a lack of understanding of how the tax will affect the health and welfare of various demographic groups of interest. This article provides guidance to policy makers by estimating price elasticities among adults by gender, income, age, and race or ethnicity. Women, adults with income at or below the median income, young adults, African‐Americans, and Hispanics are most responsive to cigarette price increases. For example, adults with income at or below the median are more than four times as price‐responsive as those with income above the median.

Suggested Citation

  • Matthew C. Farrelly & Jeremy W. Bray & Terry Pechacek & Trevor Woollery, 2001. "Response by Adults to Increases in Cigarette Prices by Sociodemographic Characteristics," Southern Economic Journal, John Wiley & Sons, vol. 68(1), pages 156-165, July.
    • Handle: RePEc:wly:soecon:v:68:y:2001:i:1:p:156-165
    DOI: 10.1002/j.2325-8012.2001.tb00404.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/j.2325-8012.2001.tb00404.x
    Download Restriction: no
    File URL: https://libkey.io/10.1002/j.2325-8012.2001.tb00404.x?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. William N. Evans & Matthew C. Farrelly, 1998. "The Compensating Behavior of Smokers: Taxes, Tar, and Nicotine," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 578-595, Autumn.
    2. Manning, Willard G, et al, 1987. "Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment," American Economic Review, American Economic Association, vol. 77(3), pages 251-277, June.
    3. 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.
    4. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    5. Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627, Elsevier.
    6. 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.
    7. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1991. "Rational Addiction and the Effect of Price on Consumption," American Economic Review, American Economic Association, vol. 81(2), pages 237-241, May.
    8. Duan, Naihua, et al, 1984. "Choosing between the Sample-Selection Model and the Multi-part Model," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(3), pages 283-289, July.
    9. Manning, Willard G. & Blumberg, Linda & Moulton, Lawrence H., 1995. "The demand for alcohol: The differential response to price," Journal of Health Economics, Elsevier, vol. 14(2), pages 123-148, June.
    10. Michael Grossman, 1993. "Policy Watch: Alcohol and Cigarette Taxes," Journal of Economic Perspectives, American Economic Association, vol. 7(4), pages 211-222, Fall.
    11. 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.
    12. Frank J. Chaloupka & Michael Grossman, 1996. "Price, Tobacco Control Policies and Youth Smoking," NBER Working Papers 5740, National Bureau of Economic Research, Inc.
    13. Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May.
    14. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    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. John A. Tauras & Jidong Huang & Frank J. Chaloupka, 2013. "Differential Impact of Tobacco Control Policies on Youth Sub-Populations," IJERPH, MDPI, vol. 10(9), pages 1-17, September.
    2. Chen, S. & Doerr, S. & Frost, J. & Gambacorta, L. & Shin, H.S., 2023. "The fintech gender gap," Journal of Financial Intermediation, Elsevier, vol. 54(C).
    3. Pearl Bader & David Boisclair & Roberta Ferrence, 2011. "Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk Populations: A Knowledge Synthesis," IJERPH, MDPI, vol. 8(11), pages 1-22, October.
    4. Anh Ngo & Geoffrey T. Fong & Lorraine V. Craig & Ce Shang, 2019. "Analysis of Gender Differences in the Impact of Taxation and Taxation Structure on Cigarette Consumption in 17 ITC Countries," IJERPH, MDPI, vol. 16(7), pages 1-11, April.
    5. Lauren M. Dutra & Matthew C. Farrelly & James Nonnemaker & Brian Bradfield & Jennifer Gaber & Minal Patel & Elizabeth C. Hair, 2019. "Differential Relationship between Tobacco Control Policies and U.S. Adult Current Smoking by Poverty," IJERPH, MDPI, vol. 16(21), pages 1-16, October.
    6. Mohammad Siahpush & Ron Borland & Geoffrey T. Fong & Tara Elton-Marshall & Hua-Hie Yong & Charamporn Holumyong, 2011. "Socioeconomic Differences in the Effectiveness of the Removal of the “Light” Descriptor on Cigarette Packs: Findings from the International Tobacco Control (ITC) Thailand Survey," IJERPH, MDPI, vol. 8(6), pages 1-11, June.
    7. Kim, Hyunchul & Lee, Dongwon, 2023. "Tax incidence for menthol cigarettes by race: Evidence from Nielsen Homescan data," Journal of Health Economics, Elsevier, vol. 92(C).
    8. Otálvaro, Susana & Gallego, Juan Miguel & Rodríguez-Lesmes, Paul, 2023. "De-normalizing smoking in urban areas: Public smoking bans and smoking prevalence," Economics & Human Biology, Elsevier, vol. 48(C).
    9. Sunday Azagba & Mesbah Sharaf, 2011. "Cigarette Taxes and Smoking Participation: Evidence from Recent Tax Increases in Canada," IJERPH, MDPI, vol. 8(5), pages 1-18, May.
    10. Gallego, J. M & Paraje, G & Rodríguez-Lesmes, P, 2022. "Inequality of the crowding-out effect of tobacco expenditure in Colombia," Documentos de Trabajo 20304, Universidad del Rosario.

    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. William N. Evans & Jeanne S. Ringel & Diana Stech, 1999. "Tobacco Taxes and Public Policy to Discourage Smoking," NBER Chapters, in: Tax Policy and the Economy, Volume 13, pages 1-56, National Bureau of Economic Research, Inc.
    2. Sijbren Cnossen, 2006. "Alcohol taxation and regulation in the European Union," CPB Discussion Paper 76.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    3. Sijbren Cnossen & D. Forrest & S. Smith, 2009. "Taxation and regulation of smoking, drinking and gambling in the European Union," CPB Special Publication 76.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    4. 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.
    5. 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.
    6. 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.
    7. Göhlmann, Silja & Schmidt, Christoph M., 2008. "Smoking in Germany: Stylized Facts, Behavioral Models, and Health Policy," Ruhr Economic Papers 64, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Erdal Tekin & Naci Mocan & Lan Liang, 2009. "Do Adolescents with Emotional or Behavioral Problems Respond to Cigarette Prices?," Southern Economic Journal, John Wiley & Sons, vol. 76(1), pages 67-85, July.
    9. Powell, Lisa M. & Tauras, John A. & Ross, Hana, 2005. "The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior," Journal of Health Economics, Elsevier, vol. 24(5), pages 950-968, September.
    10. Rajeev K. Goel & Michael A. Nelson, 2006. "The Effectiveness of Anti‐Smoking Legislation: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 325-355, July.
    11. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    12. Jeffrey E. Harris & Sandra W. Chan, 1999. "The continuum‐of‐addiction: cigarette smoking in relation to price among Americans aged 15–29," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 81-86, February.
    13. 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.
    14. repec:zbw:rwirep:0064 is not listed on IDEAS
    15. Isao Yorozu & Yimin Zhou, 2002. "The Demand For Cigarettes In Japan: Impact Of Information Dissemination On Cigarette Consumption," Contemporary Economic Policy, Western Economic Association International, vol. 20(1), pages 72-82, January.
    16. Dee, Thomas S., 1999. "The complementarity of teen smoking and drinking," Journal of Health Economics, Elsevier, vol. 18(6), pages 769-793, December.
    17. Robert Goldfarb & Thomas Leonard & Steven Suranovic, 2001. "Are rival theories of smoking underdetermined?," Journal of Economic Methodology, Taylor & Francis Journals, vol. 8(2), pages 229-251.
    18. Michael Grossman, 2005. "Individual Behaviours and Substance Use: The Role of Price," Advances in Health Economics and Health Services Research, in: Substance Use: Individual Behaviour, Social Interactions, Markets and Politics, pages 15-39, Emerald Group Publishing Limited.
    19. Tauras, John A., 2004. "Public policy and smoking cessation among young adults in the United States," Health Policy, Elsevier, vol. 68(3), pages 321-332, June.
    20. Suranovic, Steven M. & Goldfarb, Robert S. & Leonard, Thomas C., 1999. "An economic theory of cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 1-29, January.
    21. Sunday Azagba & Mesbah Sharaf, 2011. "Cigarette Taxes and Smoking Participation: Evidence from Recent Tax Increases in Canada," IJERPH, MDPI, vol. 8(5), pages 1-18, May.

    More about this item

    Statistics

    Access and download statistics

    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:wly:soecon:v:68:y:2001:i:1:p:156-165. 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: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)2325-8012 .

    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.