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The Demand for Nicotine Replacement Therapies

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Author Info
John A. Tauras
Frank J. Chaloupka

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Abstract

This paper is the first econometric study to examine the determinants of nicotine replacement therapy (NRT) demand. Pooled cross-sectional time-series scanner-based data for 50 major metropolitan markets in the United States covering the period between the second quarter 1996 and the third quarter 1999 are used in the analysis. Fixed-effects modeling is employed to assess the impact of NRT prices, cigarette prices, and other determinants on NRT demand. The estimates indicate that decreases in the price of NRT and increases in the price of cigarettes would lead to substantial increases in per-capita sales of NRT products. The average own-price elasticity of demand for Nicoderm CQ, Nicorette, and Nicotrol is -1.4, -1.5, and -1.1 respectively. The average cross-price elasticity of demand for Nicoderm CQ and Nicorette is 0.68 and 0.81 respectively.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 8332.

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Date of creation: Jun 2001
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Handle: RePEc:nbr:nberwo:8332

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I1 - Health, Education, and Welfare - - Health

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  1. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, Göteborg University, Department of Economics. [Downloadable!]
  2. Henrik Hammar & Fredrik Carlsson, 2005. "Smokers' expectations to quit smoking," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 257-267. [Downloadable!]
  3. Robert W. Paterson & Kevin J. Boyle & Christopher F. Parmeter & James E. Neumann & Paul De Civita, 2008. "Heterogeneity in preferences for smoking cessation," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1363-1377. [Downloadable!]
  4. Rosemary Avery & Donald Kenkel & Dean Lillard & Alan Mathios, 2007. "Regulating advertisements: the case of smoking cessation products," Journal of Regulatory Economics, Springer, vol. 31(2), pages 185-208, April. [Downloadable!] (restricted)
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