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Prices and Cigarette Demand: Evidence from Youth Tobacco Use in Developing Countries

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  • Deliana Kostova
  • Hana Ross
  • Evan Blecher
  • Sara Markowitz

Abstract

This paper estimates the impact of cigarette prices on youth smoking in lower-income countries using data from the Global Youth Tobacco Survey (GYTS). Country-level heterogeneity is addressed with fixed effects and by directly controlling for confounding environmental factors such as local anti-smoking sentiment, cigarette advertising, anti-smoking media messages, and compliance with youth access restrictions. We find that cigarette price is an important determinant of both smoking participation and conditional demand. The estimated price elasticity of participation is -0.63. The likelihood of participation decreases with anti-smoking sentiment and increases with exposure to cigarette advertising. The estimated price elasticity of conditional cigarette demand is approximately -1.2. Neither anti-smoking sentiment, cigarette advertising, nor access restrictions have an impact on the intensity of smoking among current smokers, but exposure to anti-smoking media may reduce the number of cigarettes smoked.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15781.

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Date of creation: Feb 2010
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Publication status: published as Deliana Kostova, Hana Ross , Evan Blecher, and Sara Markowitz. Is youth smoking responsive to cigarette prices? Evidence from low - and middle - income countries . Tobacco Control 2011; 20 : 419 - 424
Handle: RePEc:nbr:nberwo:15781

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  1. Prices and Cigarette Demand
    by Ariel Goldring in Free Market Mojo on 2010-03-17 08:38:49

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