Smoking initiation and the iron law of demand
AbstractWe show, with three longitudinal datasets, that cigarette taxes and prices affect smoking initiation decisions. Evidence from longitudinal studies is mixed but generally find that initiation does not vary with price or tax. We show that the lack of statistical significance partly results because of limited policy variation in the time periods studied, truncated behavioral windows, or mis-assignment of price and tax rates in retrospective data (which occurs when one has no information about respondents’ prior state or region of residence). Our findings highlight issues relevant to initiation behavior generally, particularly those for which individuals’ responses to policy changes may be noisy or small in magnitude.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Health Economics.
Volume (Year): 32 (2013)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505560
Smoking initiation; Cigarette price elasticity; Cigarette tax elasticity; Chronological behavioral windows; Measurement error;
Find related papers by JEL classification:
- I1 - Health, Education, and Welfare - - Health
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Nonnemaker, James M. & Farrelly, Matthew C., 2011. "Smoking initiation among youth: The role of cigarette excise taxes and prices by race/ethnicity and gender," Journal of Health Economics, Elsevier, vol. 30(3), pages 560-567, May.
- Frank J. Chaloupka & Kenneth E. Warner, 1999.
"The Economics of Smoking,"
NBER Working Papers
7047, National Bureau of Economic Research, Inc.
- Douglas, Stratford, 1998. "The Duration of the Smoking Habit," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 49-64, January.
- Philip DeCicca & Donald S. Kenkel & Alan D. Mathios, 2008.
"Cigarette Taxes and the Transition from Youth to Adult Smoking: Smoking Initiation, Cessation, and Participation,"
NBER Working Papers
14042, National Bureau of Economic Research, Inc.
- DeCicca, Philip & Kenkel, Don & Mathios, Alan, 2008. "Cigarette taxes and the transition from youth to adult smoking: Smoking initiation, cessation, and participation," Journal of Health Economics, Elsevier, vol. 27(4), pages 904-917, July.
- Jonathan Gruber & Botond Köszegi, 2001. "Is Addiction "Rational"? Theory And Evidence," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1261-1303, November.
- Christopher Browning & Tama Leventhal & Jeanne Brooks-Gunn, 2004. "Neighborhood context and racial differences in early adolescent sexual activity," Demography, Springer, vol. 41(4), pages 697-720, November.
- 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, 07.
- Gerald S. Oettinger, 1999. "The Effects of Sex Education on Teen Sexual Activity and Teen Pregnancy," Journal of Political Economy, University of Chicago Press, vol. 107(3), pages 606-635, June.
- Carpenter, Christopher & Cook, Philip J., 2008. "Cigarette taxes and youth smoking: New evidence from national, state, and local Youth Risk Behavior Surveys," Journal of Health Economics, Elsevier, vol. 27(2), pages 287-299, March.
- Orphanides, Athanasios & Zervos, David, 1995.
"Rational Addiction with Learning and Regret,"
Journal of Political Economy,
University of Chicago Press, vol. 103(4), pages 739-58, August.
- 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.
- Joseph J. Sabia, 2006. "Does sex education affect adolescent sexual behaviors and health?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 25(4), pages 783-802.
- Dean R. Lillard & Andrew Sfekas, 2013. "Just passing through: the effect of the Master Settlement Agreement on estimated cigarette tax price pass-through," Applied Economics Letters, Taylor & Francis Journals, vol. 20(4), pages 353-357, March.
- John Cawley & Sara Markowitz & John Tauras, 2003.
"Lighting Up and Slimming Down: The Effects of Body Weight and Cigarette Prices on Adolescent Smoking Initiation,"
NBER Working Papers
9561, National Bureau of Economic Research, Inc.
- Cawley, John & Markowitz, Sara & Tauras, John, 2004. "Lighting up and slimming down: the effects of body weight and cigarette prices on adolescent smoking initiation," Journal of Health Economics, Elsevier, vol. 23(2), pages 293-311, March.
- Douglas, Stratford & Hariharan, Govind, 1994. "The hazard of starting smoking: Estimates from a split population duration model," Journal of Health Economics, Elsevier, vol. 13(2), pages 213-230, July.
- Feng Liu, 2010. "Cutting through the smoke: separating the effect of price on smoking initiation, relapse and cessation," Applied Economics, Taylor & Francis Journals, vol. 42(23), pages 2921-2939.
- Philip DeCicca & Donald Kenkel & Alan Mathios, 2002. "Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 144-169, February.
- Glied, Sherry, 2002. "Youth tobacco control: reconciling theory and empirical evidence," Journal of Health Economics, Elsevier, vol. 21(1), pages 117-135, January.
- Nicolas R. Ziebarth & Gert G. Wagner, 2013.
"Top-down v. Bottom-up: The Long-Term Impact of Government Ideology and Personal Experience on Values,"
Discussion Papers of DIW Berlin
1280, DIW Berlin, German Institute for Economic Research.
- Ziebarth, Nicolas R. & Wagner, Gert G., 2013. "Top‐Down vs. Bottom‐Up: The Long‐Term Impact of Government Ideology and Personal Experience on Values," IZA Discussion Papers 7279, Institute for the Study of Labor (IZA).
- Rebekka Christopoulou & Dean R. Lillard, 2013.
"Is Smoking Behavior Culturally Determined?: Evidence from British Immigrants,"
Discussion Papers of DIW Berlin
1265, DIW Berlin, German Institute for Economic Research.
- Rebekka Christopoulou & Dean R. Lillard, 2013. "Is Smoking Behavior Culturally Determined? Evidence from British Immigrants," NBER Working Papers 19036, National Bureau of Economic Research, Inc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.