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Clean Indoor Air Laws And The Demand For Cigarettes

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Author Info
FRANK J. CHALOUPKA
HENRY SAFFER

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Abstract

This paper empirically tests the effect of clean indoor air laws on smoking. Public place clean indoor air laws restrict cigarette smoking in public places such as restaurants. Private place clean air laws regulate smoking in private work places as well as in public places. This study uses a time series of cross sections of the 50 states of the United States and Washington, D.C., from 1975 through 1985, to estimate single equation and simultaneous equation models of cigarette demand. The single equation results indicate that both the public place law and the private work place law have a negative effect on cigarette demand. However, a test for endogeneity shows that the enactment of clean indoor air laws is a function of cigarette demand. Results from a simultaneous equations model indicate that the public place law has a significant negative impact on cigarette demand, while the work place law has no effect on cigarette demand. Although these results demonstrate that only states with low levels of smoking have passed work place clean air laws, the results do not imply that the level of smoking would not decrease if such a law were imposed in all states. Copyright 1992 Western Economic Association International.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1465-7287.1992.tb00227.x
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Publisher Info
Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 10 (1992)
Issue (Month): 2 (04)
Pages: 72-83
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Handle: RePEc:bla:coecpo:v:10:y:1992:i:2:p:72-83

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  1. Ayda A. Yurekli & Ping Zhang, 2000. "The impact of clean indoor-air laws and cigarette smuggling on demand for cigarettes: an empirical model," Health Economics, John Wiley & Sons, Ltd., vol. 9(2), pages 159-170.
  2. Hammar, Henrik & Martinsson, Peter, 2001. "The Effect Of Cigarette Prices And Antismoking Policies On The Age Of Smoking Initiation," Working Papers in Economics 62, Göteborg University, Department of Economics. [Downloadable!]
  3. Frank J. Chaloupka & Henry Wechsler, 1995. "Price, Tobacco Control Policies and Smoking Among Young Adults," NBER Working Papers 5012, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  4. Silvia Tiezzi, 2009. "The Economic Impact of Clean Indoor Air Laws: A Review of Alternative Approaches and of Empirical findings," Department of Economics University of Siena 570, Department of Economics, University of Siena. [Downloadable!]
  5. Natsuko Iwasaki & Victor Tremblay, 2009. "The effect of marketing regulations on efficiency: LeChatelier versus coordination effects," Journal of Productivity Analysis, Springer, vol. 32(1), pages 41-54, August. [Downloadable!] (restricted)
  6. Frank J. Chaloupka & Michael Grossman, 1996. "Price, Tobacco Control Policies and Youth Smoking," NBER Working Papers 5740, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  7. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, Göteborg University, Department of Economics. [Downloadable!]
  8. Craig A. Gallet, 2006. "Health information and cigarette consumption: supply and spatial considerations," Empirica, Springer, vol. 33(1), pages 35-47, March. [Downloadable!] (restricted)
  9. Greg Colman & Dahlia K. Remler, 2004. "Vertical Equity Consequences of Very High Cigarette Tax Increases: If the Poor are the Ones Smoking, How Could Cigarette Tax Increases be Progressive?," NBER Working Papers 10906, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Inas Rashad, 2006. "Structural Estimation of Caloric Intake, Exercise, Smoking, and Obesity," NBER Working Papers 11957, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. Matthew C. Farrelly & Terry F. Pechacek & Frank J. Chaloupka, 2001. "The Impact of Tobacco Control Program Expenditures on Aggregate Cigarette Sales: 1981-1998," NBER Working Papers 8691, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  12. Robert L. Ohsfeldt & Raymond G. Boyle & Eli L. Capilouto, 1998. "Tobacco Taxes, Smoking Restrictions, and Tobacco Use," NBER Working Papers 6486, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Stephen Farr & Carol Horton Tremblay & Victor Tremblay, 2001. "The Welfare Effect of Advertising Restrictions in the U.S. Cigarette Industry," Review of Industrial Organization, Springer, vol. 18(2), pages 147-160, March. [Downloadable!] (restricted)
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