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A `long march' perspective on tobacco use in Canada

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  • Nikolay Gospodinov
  • Ian Irvine

Abstract

In this paper we present a model of tobacco demand in Canada, with a view to establishing if price and tax policy on the one hand or educational, regulatory, and demographic influences on the other have been primarily responsible for the substantial drop in consumption since 1980. We address some methodological and econometric issues that have escaped the attention of some analysts to this point. Using data for the period 1972-2000, we find that non-price developments have had a strong deterrent effect and that the price elasticity of demand is now lower than even the recently obtained low estimates propose. These findings have strong public policy content.

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  • Nikolay Gospodinov & Ian Irvine, 2005. "A `long march' perspective on tobacco use in Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 38(2), pages 366-393, May.
  • Handle: RePEc:cje:issued:v:38:y:2005:i:2:p:366-393
    DOI: 10.1111/j.0008-4085.2005.00284.x
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    Cited by:

    1. David Laibson, 1997. "Golden Eggs and Hyperbolic Discounting," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 443-478.
    2. Anindya Sen, 2009. "Estimating the impacts of household behavior on youth smoking: evidence from Ontario, Canada," Review of Economics of the Household, Springer, vol. 7(2), pages 189-218, June.
    3. Auld M. Christopher & Zarrabi Mahmood, 2015. "Long-Term Effects of Tobacco Prices Faced by Adolescents," Forum for Health Economics & Policy, De Gruyter, vol. 18(1), pages 1-24, January.
    4. Gospodinov, Nikolay & Irvine, Ian, 2009. "Tobacco taxes and regressivity," Journal of Health Economics, Elsevier, vol. 28(2), pages 375-384, March.
    5. Latif, Ehsan, 2014. "The impact of recession on drinking and smoking behaviours in Canada," Economic Modelling, Elsevier, vol. 42(C), pages 43-56.

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    More about this item

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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