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Synthesizing Econometric Evidence: The Case of Demand Elasticity Estimates

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  • Philip DeCicca
  • Don Kenkel

Abstract

Econometric estimates of the responsiveness of health‐related consumer demand to higher prices are often key ingredients for risk policy analysis. We review the potential advantages and challenges of synthesizing econometric evidence on the price‐responsiveness of consumer demand. We draw on examples of research on consumer demand for health‐related goods, especially cigarettes. We argue that the overarching goal of research synthesis in this context is to provide policy‐relevant evidence for broad‐brush conclusions. We propose three main criteria to select among research synthesis methods. We discuss how in principle and in current practice synthesis of research on the price‐elasticity of smoking meets our proposed criteria. Our analysis of current practice also contributes to academic research on the specific policy question of the effectiveness of higher cigarette prices to reduce smoking. Although we point out challenges and limitations, we believe more work on research synthesis in this area will be productive and important.

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  • Philip DeCicca & Don Kenkel, 2015. "Synthesizing Econometric Evidence: The Case of Demand Elasticity Estimates," Risk Analysis, John Wiley & Sons, vol. 35(6), pages 1073-1085, June.
  • Handle: RePEc:wly:riskan:v:35:y:2015:i:6:p:1073-1085
    DOI: 10.1111/risa.12363
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    Cited by:

    1. van Bergeijk, P.A.G. & Lazzaroni, S., 2013. "Macroeconomics of natural disasters," ISS Working Papers - General Series 50075, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Donald Kenkel & Alan Mathios & Hua Wang, 2015. "Menthol Cigarette Advertising and Cigarette Demand," NBER Working Papers 21790, National Bureau of Economic Research, Inc.
    3. Michael F. Pesko & John A. Tauras & Jidong Huang & Frank J. Chaloupka, IV, 2016. "The Influence of Geography and Measurement in Estimating Cigarette Price Responsiveness," NBER Working Papers 22296, National Bureau of Economic Research, Inc.
    4. Beltrán, Allan & Maddison, David & Elliott, Robert J R, 2018. "Is Flood Risk Capitalised Into Property Values?," Ecological Economics, Elsevier, vol. 146(C), pages 668-685.
    5. Kajal Lahiri & Xian Li, 2020. "Smoking Behavior of Older Adults: A Panel Data Analysis Using HRS," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(3), pages 495-523, September.
    6. Benjamin Hansen & Joseph J. Sabia & Daniel I. Rees, 2015. "Cigarette Taxes and Youth Smoking: Updated Estimates Using YRBS Data," NBER Working Papers 21311, National Bureau of Economic Research, Inc.
    7. Susan Xu Tang & David L. Sjoquist, 2019. "Differential Effects of Federal and State Gasoline Taxes on Gasoline Consumption," Hacienda Pública Española / Review of Public Economics, IEF, vol. 229(2), pages 11-32, June.
    8. Nargis, Nigar & Xue, Zheng & Asare, Samuel & Bandi, Priti & Jemal, Ahmedin, 2023. "Declining trend in cigarette smoking among U.S. adults over 2008–2018: A decomposition analysis," Social Science & Medicine, Elsevier, vol. 328(C).

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    JEL classification:

    • H0 - Public Economics - - General
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I1 - Health, Education, and Welfare - - Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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