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How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey

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  • Angel López Nicolás

    (Dept. Economics and Business, Centre de Recerca en Economia i Salut (CRES), Universitat Pompeu Fabra, Barcelona, Spain)

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    Abstract

    This paper presents an econometric analysis of the effect of policy instruments such as prices, restrictions to use and health warnings on the decisions to start and quit smoking. The duration up to starting and up to quitting is represented with several parametric models for the hazard function, and statistical tests are used to choose the best specification. The estimates reveal that prices have a very weak effect on the duration up to starting. On the contrary, the duration up to quitting is shortened by increases in the prices of the cheapest varieties of cigarrettes in the Spanish market. This evidence suggests specific directions for change in the structure of tobacco taxes. Copyright © 2002 John Wiley & Sons, Ltd.

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    File URL: http://hdl.handle.net/10.1002/hec.745
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    Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

    Volume (Year): 11 (2002)
    Issue (Month): 6 ()
    Pages: 521-535

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    Handle: RePEc:wly:hlthec:v:11:y:2002:i:6:p:521-535

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    Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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    1. Labeaga, Jose M., 1999. "A double-hurdle rational addiction model with heterogeneity: Estimating the demand for tobacco," Journal of Econometrics, Elsevier, vol. 93(1), pages 49-72, November.
    2. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547.
    3. John A. Tauras & Frank J. Chaloupka, 1999. "Determinants of Smoking Cessation: An Analysis of Young Adult Men and Women," NBER Working Papers 7262, National Bureau of Economic Research, Inc.
    4. Douglas, Stratford, 1998. "The Duration of the Smoking Habit," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 49-64, January.
    5. Frank J. Chaloupka & Kenneth E. Warner, 1999. "The Economics of Smoking," NBER Working Papers 7047, National Bureau of Economic Research, Inc.
    6. Namkee Ahn & Josée Alberto Molina, . "Smoking in Spain: Analysis of Initiation and Cessation," Working Papers 2001-02, FEDEA.
    7. 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.
    8. Garcia, Jaume & Labeaga, Jose M, 1996. "Alternative Approaches to Modelling Zero Expenditure: An Application to Spanish Demand for Tobacco," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 58(3), pages 489-506, August.
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    Cited by:
    1. Philip DeCicca & Donald S. Kenkel & Alan D. Mathios & Yoon-Jeong Shin & Jae-Young Lim, 2006. "Youth Smoking, Cigarette Prices, and Anti-Smoking Sentiment," NBER Working Papers 12458, National Bureau of Economic Research, Inc.
    2. van Ours, Jan C. & Williams, Jenny, 2007. "Cannabis prices and dynamics of cannabis use," Journal of Health Economics, Elsevier, vol. 26(3), pages 578-596, May.
    3. David Madden, 2007. "Tobacco taxes and starting and quitting smoking: does the effect differ by education?," Applied Economics, Taylor & Francis Journals, vol. 39(5), pages 613-627.
    4. Jones, A.M & Etile, F, 2010. "Schooling and smoking among the baby boomers and evaluation of the impact of educational expansion in France," Health, Econometrics and Data Group (HEDG) Working Papers 10/02, HEDG, c/o Department of Economics, University of York.
    5. Christian Bünnings, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 0459, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. 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.
    7. 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.
    8. Silja Göhlmann, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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