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The efficacy of state-level antismoking laws: Demand and supply considerations

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  • Craig Gallet

Abstract

Utilizing published ratings of state-level antismoking laws, this paper addresses the merits of limits to smoking in public places and restrictions on youth access to tobacco. Consistent with the literature, we find that clean indoor-air laws reduce demand. However, by failing to address supply considerations, the literature to date presents a biased reaction of consumption to antismoking laws. Indeed, we find that clean indoor-air laws also intensify competition, which suggests that producers mitigate demand reductions by lowering price. Nonetheless, restrictions to youth access, as well as enforcement and penalty efforts, have little impact on cigarette consumption across states. Copyright Academy of Economics and Finance 2004

Suggested Citation

  • Craig Gallet, 2004. "The efficacy of state-level antismoking laws: Demand and supply considerations," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(3), pages 404-412, September.
    • Handle: RePEc:spr:jecfin:v:28:y:2004:i:3:p:404-412
    DOI: 10.1007/BF02751742
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    References listed on IDEAS

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    7. Carol Horton Tremblay & Victor J. Tremblay, 1995. "The Impact Of Cigarette Advertising On Consumer Surplus, Profit, And Social Welfare," Contemporary Economic Policy, Western Economic Association International, vol. 13(1), pages 113-124, January.
    8. Baltagi, Badi H & Levin, Dan, 1986. "Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 148-155, February.
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    Cited by:

    1. Aycan Koksal & Michael K. Wohlgenant, 2016. "How do smoking bans in restaurants affect restaurant and at-home alcohol consumption?," Empirical Economics, Springer, vol. 50(4), pages 1193-1213, June.
    2. Craig A. Gallet & Gary A. Hoover & Junsoo Lee, 2006. "Putting Out Fires: An Examination of the Determinants of State Clean Indoor‐Air Laws," Southern Economic Journal, John Wiley & Sons, vol. 73(1), pages 112-124, July.
    3. Sara Markowitz, 2014. "Where There'S Smoking, There'S Fire: The Effects Of Smoking Policies On The Incidence Of Fires In The Usa," Health Economics, John Wiley & Sons, Ltd., vol. 23(11), pages 1353-1373, November.
    4. Markowitz, Sara, 2008. "The effectiveness of cigarette regulations in reducing cases of Sudden Infant Death Syndrome," Journal of Health Economics, Elsevier, vol. 27(1), pages 106-133, January.
    5. James Lightwood & Stanton A Glantz, 2013. "The Effect of the California Tobacco Control Program on Smoking Prevalence, Cigarette Consumption, and Healthcare Costs: 1989–2008," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-11, February.
    6. Christian King & Sara Markowitz & Hana Ross, 2015. "Tobacco Control Policies and Sudden Infant Death Syndrome in Developed Nations," Health Economics, John Wiley & Sons, Ltd., vol. 24(8), pages 1042-1048, August.
    7. Nicholas Apergis & Rajeev Goel & James Payne, 2014. "Dynamics of U.S. State Cigarette Consumption: Evidence from Panel Error Correction Modeling," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(1), pages 3-20, March.
    8. Lightwood, James & Glantz, Stanton, 2011. "Effect of the Arizona tobacco control program on cigarette consumption and healthcare expenditures," Social Science & Medicine, Elsevier, vol. 72(2), pages 166-172, January.

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