Year: 1981
Type: article
Abstract: We examine the impact of three sets of government regulations on the demand for cigarettes by teenagers in the United States.These are:(1) the excise tax on cigarettes, ( 2) the Fairness Doctrine of the Federal Communications Commission, which resulted in the airing of anti-smoking messages on radio and television from July 1, 1967 to January 1, 1971, and (3) the Public Health Cigarette Smoking Act of 1970, which banned prosmoking cigarette advertising on radio and television after January 1, 1971.Teenage price elasticities of demand for cigarettes are substantial and much larger than the corresponding adult price elasticities.The teenage smoking participation elasticity equals -1.2, and the quantity smoked elasticity equals -1.4.It follows that, if future reductions in youth smoking are desired, an increase in the Federal excise tax is a potent policy to accomplish this goal.The contention of the proponents of the advertising ban that the Fairness Doctrine failed in the case of teenagers is incorrect.According to our results, the doctrine had a substantial negative impact on teenage smoking participation rates.Extrapolations suggest that the advertising ban was no better or worse a policy than the Fairness Doctrine.
Source: The Journal of Law and Economics
DOI: 10.1086/466999
Institution: Rutgers New Jersey Medical School
Language: English
Subfield: Physiology
Field: Medicine
Domain: Health Sciences
Open Access status: bronze
OpenAlex ID: W3121247166