Prices and social behavior: A study of adult smoking in Canadian Aboriginal communities
AbstractThis paper provides the first estimates of tobacco price elasticity for adults in Canada's Aboriginal communities, distinguishing between two price effects: the direct effect, reflecting individual reaction to a price change, and the indirect effect, whereby price influences the individual by changing community smoking behavior. Estimates suggest a 10 percent increase in price decreases daily smoking by 0.75 percentage points (1.7 percent), occasional smoking by 1.39 percentage points (9.3 percent) and average smoking intensity by 0.15 cigarettes per day (2.9 percent). Further, the indirect effect doubles the response to a change in tobacco prices over the direct effect alone.
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Bibliographic InfoPaper provided by Department of Economics, University of Leicester in its series Discussion Papers in Economics with number 11/50.
Date of creation: Nov 2011
Date of revision: Dec 2012
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Find related papers by JEL classification:
- D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
- I10 - Health, Education, and Welfare - - Health - - - General
- I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-01 (All new papers)
- NEP-ENE-2012-02-01 (Energy Economics)
- NEP-ENV-2012-02-01 (Environmental Economics)
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