IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp13252.html
   My bibliography  Save this paper

Cigarette Taxes and Smoking in the Long Run

Author

Listed:
  • Friedson, Andrew I.

    (University of Colorado Denver)

  • Rees, Daniel I.

    (Universidad Carlos III de Madrid)

Abstract

Researchers have focused on the contemporaneous relationship between cigarette taxes and smoking, while the longer-run effects of cigarette taxes have received little attention. Using individual-level panel data from 1970-2017, we estimate the effects of cigarette taxes experienced as a teenager on smoking later in life. We find that a one-dollar increase in the cigarette tax experienced between the ages of 12 and 17 is associated with substantial reductions in smoking participation and intensity among adults in their 20s through mid-60s. Among first-time mothers, it is associated with a reduction in the likelihood of smoking the year of giving birth.

Suggested Citation

  • Friedson, Andrew I. & Rees, Daniel I., 2020. "Cigarette Taxes and Smoking in the Long Run," IZA Discussion Papers 13252, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp13252
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp13252.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Kevin Callison & Robert Kaestner, 2014. "Do Higher Tobacco Taxes Reduce Adult Smoking? New Evidence Of The Effect Of Recent Cigarette Tax Increases On Adult Smoking," Economic Inquiry, Western Economic Association International, vol. 52(1), pages 155-172, January.
    2. Diana S. Lien & William N. Evans, 2005. "Estimating the Impact of Large Cigarette Tax Hikes: The Case of Maternal Smoking and Infant Birth Weight," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
    3. J?r?me Adda & Francesca Cornaglia, 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply," American Economic Review, American Economic Association, vol. 103(7), pages 3102-3114, December.
    4. Lillard, Dean R. & Molloy, Eamon & Sfekas, Andrew, 2013. "Smoking initiation and the iron law of demand," Journal of Health Economics, Elsevier, vol. 32(1), pages 114-127.
    5. 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.
    6. Philip DeCicca & Donald Kenkel & Michael F. Lovenheim, 2022. "The Economics of Tobacco Regulation: A Comprehensive Review," Journal of Economic Literature, American Economic Association, vol. 60(3), pages 883-970, September.
    7. Benjamin Hansen & Joseph J. Sabia & Daniel I. Rees, 2017. "Have Cigarette Taxes Lost Their Bite? New Estimates of the Relationship between Cigarette Taxes and Youth Smoking," American Journal of Health Economics, MIT Press, vol. 3(1), pages 60-75, Winter.
    8. 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.
    9. Michael Darden & Donna B. Gilleskie & Koleman Strumpf, 2018. "Smoking And Mortality: New Evidence From A Long Panel," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 59(3), pages 1571-1619, August.
    10. Michael Darden, 2017. "Smoking, Expectations, and Health: A Dynamic Stochastic Model of Lifetime Smoking Behavior," Journal of Political Economy, University of Chicago Press, vol. 125(5), pages 1465-1522.
    11. Kleinman, J.C. & Kopstein, A., 1987. "Smoking during pregnancy, 1967-80," American Journal of Public Health, American Public Health Association, vol. 77(7), pages 823-825.
    12. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-742, August.
    13. M.C. Farrelly & C.T. Nimsch & A. Hyland & M. Cummings, 2004. "The effects of higher cigarette prices on tar and nicotine consumption in a cohort of adult smokers," Health Economics, John Wiley & Sons, Ltd., vol. 13(1), pages 49-58, January.
    14. DeCicca, Philip & McLeod, Logan, 2008. "Cigarette taxes and older adult smoking: Evidence from recent large tax increases," Journal of Health Economics, Elsevier, vol. 27(4), pages 918-929, July.
    15. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    16. Erik Nesson, 2017. "Heterogeneity in Smokers' Responses to Tobacco Control Policies," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 206-225, February.
    17. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    18. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    19. Levy, Douglas E. & Meara, Ellen, 2006. "The effect of the 1998 Master Settlement Agreement on prenatal smoking," Journal of Health Economics, Elsevier, vol. 25(2), pages 276-294, March.
    20. Robert L. Ohsfeldt & Raymond G. Boyle & Eli Capilouto, 1997. "Letter: Effects of tobacco excise taxes on the use of smokeless tobacco products in the USA," Health Economics, John Wiley & Sons, Ltd., vol. 6(5), pages 525-531, September.
    21. Frank J. Chaloupka & Henry Saffer, 1992. "Clean Indoor Air Laws And The Demand For Cigarettes," Contemporary Economic Policy, Western Economic Association International, vol. 10(2), pages 72-83, April.
    22. Chad Cotti & Erik Nesson & Nathan Tefft, 2016. "The Effects of Tobacco Control Policies on Tobacco Products, Tar, and Nicotine Purchases among Adults: Evidence from Household Panel Data," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 103-123, November.
    23. Benjamin Hansen & Joseph J. Sabia & Daniel I. Rees, 2017. "Have Cigarette Taxes Lost Their Bite? New Estimates of the Relationship between Cigarette Taxes and Youth Smoking," American Journal of Health Economics, University of Chicago Press, vol. 3(1), pages 60-75, Winter.
    24. David Simon, 2016. "Does Early Life Exposure to Cigarette Smoke Permanently Harm Childhood Welfare? Evidence from Cigarette Tax Hikes," American Economic Journal: Applied Economics, American Economic Association, vol. 8(4), pages 128-159, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lauren Hoehn-Velasco & Michael F. Pesko & Serena Phillips, 2023. "The Long-Term Impact of in Utero Cigarette Taxes on Adult Prenatal Smoking," American Journal of Health Economics, University of Chicago Press, vol. 9(4), pages 605-648.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lauren Hoehn-Velasco & Michael F. Pesko & Serena Phillips, 2023. "The Long-Term Impact of in Utero Cigarette Taxes on Adult Prenatal Smoking," American Journal of Health Economics, University of Chicago Press, vol. 9(4), pages 605-648.
    2. Lauren Hoehn-Velasco & Michael F. Pesko & Serena Phillips, 2023. "The Long-Term Impact of in Utero Cigarette Taxes on Adult Prenatal Smoking," American Journal of Health Economics, University of Chicago Press, vol. 9(4), pages 605-648.
    3. Erik Nesson, 2017. "The Impact of Tobacco Control Policies on Adolescent Smoking: Comparing Self-Reports and Biomarkers," American Journal of Health Economics, MIT Press, vol. 3(4), pages 507-527, Fall.
    4. Friedson, Andrew & Li, Moyan & Meckel, Katherine & Rees, Daniel I. & Sacks, Daniel W., 2023. "Cigarette taxes, smoking, and health in the long run," Journal of Public Economics, Elsevier, vol. 222(C).
    5. Carpenter, Christopher S. & Sansone, Dario, 2021. "Cigarette taxes and smoking among sexual minority adults," Journal of Health Economics, Elsevier, vol. 79(C).
    6. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2020. "The effects of traditional cigarette and e-cigarette tax rates on adult tobacco product use," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 229-258, June.
    7. Vinish Shrestha, 2022. "Revisiting the Effects of Cigarette Taxes on Smoking Outcomes," Working Papers 2022-02, Towson University, Department of Economics, revised Oct 2022.
    8. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    9. Michael R. Richards & Joachim Marti & Johanna Catherine Maclean & Jason Fletcher & Donald Kenkel, 2017. "Tobacco Control, Medicaid Coverage, and the Demand for Smoking Cessation Drugs," American Journal of Health Economics, MIT Press, vol. 3(4), pages 528-549, Fall.
    10. Michael Kvasnicka & Thomas Siedler & Nicolas R. Ziebarth, 2018. "The health effects of smoking bans: Evidence from German hospitalization data," Health Economics, John Wiley & Sons, Ltd., vol. 27(11), pages 1738-1753, November.
    11. Leah K. Lakdawala & David Simon, 2017. "The Intergenerational Consequences of Tobacco Policy: A Review of Policy's Influence on Maternal Smoking and Child Health," Southern Economic Journal, John Wiley & Sons, vol. 84(1), pages 229-274, July.
    12. Sen Choudhury, Rebecca & Conway, Karen Smith, 2020. "The effect of tobacco policies on youth physical activity," Economics & Human Biology, Elsevier, vol. 38(C).
    13. Darden, Michael E. & Hotchkiss, Julie L. & Melinda Pitts, M., 2021. "The dynamics of the smoking wage penalty," Journal of Health Economics, Elsevier, vol. 79(C).
    14. Meier, Armando N. & Odermatt, Reto & Stutzer, Alois, 2021. "Tobacco sales prohibition and teen smoking," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 998-1014.
    15. Zhuang Hao & Benjamin W. Cowan, 2019. "The Effects of Graduation Requirements on Risky Health Behaviors of High School Students," American Journal of Health Economics, MIT Press, vol. 5(1), pages 97-125, Winter.
    16. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    17. Leah K. Lakdawala & David Simon, 2016. "The Intergenerational Consequences of Tobacco Policy," Working papers 2016-27, University of Connecticut, Department of Economics.
    18. Johanna Catherine MacLean & Asia Sikora Kessler & Donald S. Kenkel, 2016. "Cigarette Taxes and Older Adult Smoking: Evidence from the Health and Retirement Study," Health Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 424-438, April.
    19. D. Mark Anderson & Kyutaro Matsuzawa & Joseph J. Sabia, 2020. "Cigarette Taxes and Teen Marijuana Use," NBER Working Papers 26780, National Bureau of Economic Research, Inc.
    20. Erik Nesson, 2017. "Heterogeneity in Smokers' Responses to Tobacco Control Policies," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 206-225, February.

    More about this item

    Keywords

    smoking; cigarette taxes; long run;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp13252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.