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Price, Tobacco Control Policies and Youth Smoking

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Author Info
Frank J. Chaloupka
Michael Grossman

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Abstract

This paper examines effectiveness of several tobacco control policies in discouraging cigarette smoking among youths. These policies include increased cigarette excise taxes (which result in higher cigarette prices), restrictions on smoking in public places and at private worksites, and limits on the availability of tobacco products to youths. The data employed in this research are taken from the 1992, 1993, and 1994 surveys of eighth, tenth, and twelfth grade students conducted by the University of Michigan's Institute for Social Research as part of the Monitoring the Future Project. Site specific cigarette prices and measures of tobacco related policies are added to the survey data. The results indicate that tobacco control policies can be effective in reducing youth cigarette smoking. The average overall estimated price elasticity of youth cigarette demand of 1.313 indicates that large increases in cigarette excise taxes would lead to sharp reductions in youth smoking. Similarly, strong restrictions on smoking in public places would reduce the prevalence of smoking among youths, while limits on smoking in schools would reduce average cigarette consumption among young smokers. However, limits on youth access to tobacco products appear to have little impact on youth cigarette smoking. This is most likely the result of the relatively weak enforcement of these laws.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5740.

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Date of creation: Sep 1996
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Handle: RePEc:nbr:nberwo:5740

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I1 - Health, Education, and Welfare - - Health

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  1. Frank J. Chaloupka & Henry Wechsler, 1995. "Price, Tobacco Control Policies and Smoking Among Young Adults," NBER Working Papers 5012, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  2. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-42, August. [Downloadable!] (restricted)
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  3. William N. Evans & Matthew C. Farrelly, 1998. "The Compensating Behavior of Smokers: Taxes, Tar, and Nicotine," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 578-595, Autumn. [Downloadable!] (restricted)
  4. Merriman, David, 1994. "Do Cigarette Excise Tax Rates Maximize Revenue?," Economic Inquiry, Oxford University Press, vol. 32(3), pages 419-28, July.
  5. Lewit, Eugene M & Coate, Douglas & Grossman, Michael, 1981. "The Effects of Government Regulation on Teenage Smoking," Journal of Law & Economics, University of Chicago Press, vol. 24(3), pages 545-69, December.
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  6. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1994. "An Empirical Analysis of Cigarette Addiction," NBER Working Papers 3322, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  7. Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May. [Downloadable!] (restricted)
  8. William N. Evans & Matthew C. Farrelly & Edward Montgomery, 1996. "Do Workplace Smoking Bans Reduce Smoking?," NBER Working Papers 5567, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  9. Chaloupka, Frank J, 1992. "Clean Indoor Air Laws, Addiction and Cigarette Smoking," Applied Economics, Taylor and Francis Journals, vol. 24(2), pages 193-205, February.
  10. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-44, September. [Downloadable!] (restricted)
  11. Grossman, Michael, 1991. "The demand for cigarettes," Journal of Health Economics, Elsevier, vol. 10(1), pages 101-103, May. [Downloadable!] (restricted)
  12. 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, 04. [Downloadable!] (restricted)
  13. Lewit, Eugene M. & Coate, Douglas, 1982. "The potential for using excise taxes to reduce smoking," Journal of Health Economics, Elsevier, vol. 1(2), pages 121-145, August. [Downloadable!] (restricted)
  14. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
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