Work

The Influence of Geography and Measurement in Estimating Cigarette Price Responsiveness

Year: 2016

Type: report

Abstract: We use data from the Tobacco Use Supplements to the Current Population Survey from 2006-2015 to calculate cigarette price elasticities of demand using four alternative cigarette tax/ price measures that compensate for the local tax environment to various extents.We use both state-level prices and local-level prices from 386 sub-state areas of the United States.We estimate a price elasticity of total demand of -0.38 using the price measure most strongly compensating for the local tax environment, and significantly lower elasticities for other popular cigarette price measures.We also find greater price responsiveness for adults that are younger, higher income, and higher educated.

Source: National Bureau of Economic Research

DOI: 10.3386/w22296

Authors: Michael Pesko, John Tauras, Jidong Huang, Frank Chaloupka

Institutions: National Bureau of Economic Research, Cornell University, University of Illinois Chicago, Weill Cornell Medicine

Language: English

Topic: Smoking Behavior and Cessation

Subfield: Physiology

Field: Medicine

Domain: Health Sciences

Open Access status: green

Funders: University of Chicago, Booth School of Business, University of Chicago, National Cancer Institute

Award: G2229617335

OpenAlex ID: W2406510258

Cites: 20

Cited by: 17

Related to: 10