Why Take on the Tobacco Industry: the Political Economy of Government Anti-smoking Campaign
AbstractThe paper shows that government anti-smoking campaign can benefit thegovern-ment in the political bargaining with the tobacco industry by reducing the latter’s alter-native welfare. Although the equilibrium regulation on the tobacco industry increases as a result of government anti-smoking campaign, the political contribution from the tobacco industry will not necessarily go down. Anti-smoking campaign reduces the welfare of the tobacco industry but its potential loss of not lobbying increases. When the incumbent government/politician becomes more hungry for political contribution, it increases its effort in anti-smoking campaign and this could induce more political contribution from the tobacco industry under some plausible conditions.
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Bibliographic InfoPaper provided by Carleton University, Department of Economics in its series Carleton Economic Papers with number 03-04.
Length: 15 pages
Date of creation: 21 May 2003
Date of revision:
Publication status: Published: Carleton Economic Papers
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Find related papers by JEL classification:
- D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-POL-2003-07-10 (Positive Political Economics)
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