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Retailer Compliance as a Predictor of Youth Smoking Participation and Consumption

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  • Diener, Alan
  • Ahmed, Rashid
  • Snider, Judy
  • Kaiserman, Murray

Abstract

Ninety per cent of smokers report having their first whole cigarette before the age of 19. Thus, it is important to have policies such as youth access laws which may prevent youth from becoming future smokers. In Canada, the Tobacco Act prohibits retailers from furnishing tobacco products to individuals under the age of 18. For such laws to be effective, however, it is important that retailers comply with them. The objective of this study was to examine the effect of retailer compliance on youth smoking behaviour. Data on individual smoking behaviour in conjunction with provincial retailer compliance rates and cigarette prices for the years 1999-2005 were employed to examine the effects of retailer compliance on youth smoking participation and consumption. Both price and retailer compliance were significant predictors of smoking participation. Price elasticity of demand for the overall sample was estimated to be -0.54. Our results which are consistent with previous research indicate that retailer compliance must be considered when examining the effects of youth access laws. This research confirmed that youth access laws can be an important component of a successful public policy approach to youth smoking prevention.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 3078.

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Date of creation: Apr 2007
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Handle: RePEc:pra:mprapa:3078

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Keywords: youth smoking; two-part model; retailer compliance;

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  1. Hana Ross & Frank J. Chaloupka, 2004. "The Effect of Public Policies and Prices on Youth Smoking," Southern Economic Journal, Southern Economic Association, vol. 70(4), pages 796-815, April.
  2. 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.
  3. Frank J. Chaloupka & Kenneth E. Warner, 1999. "The Economics of Smoking," NBER Working Papers 7047, National Bureau of Economic Research, Inc.
  4. Jones, Andrew M., 2000. "Health econometrics," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 6, pages 265-344 Elsevier.
  5. Powell, Lisa M. & Tauras, John A. & Ross, Hana, 2005. "The importance of peer effects, cigarette prices and tobacco control policies for youth smoking behavior," Journal of Health Economics, Elsevier, vol. 24(5), pages 950-968, September.
  6. Jonathan Gruber & Jonathan Zinman, 2000. "Youth Smoking in the U.S.: Evidence and Implications," NBER Working Papers 7780, National Bureau of Economic Research, Inc.
  7. Hana Ross & Frank J. Chaloupka, 2003. "The effect of cigarette prices on youth smoking," Health Economics, John Wiley & Sons, Ltd., vol. 12(3), pages 217-230.
  8. Eugene M. Lewit & Douglas Coate & Michael Grossman, 1981. "The Effects of Government Regulation on Teenage Smoking," NBER Working Papers 0655, National Bureau of Economic Research, Inc.
  9. 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.
  10. Emery, Sherry & White, Martha M. & Pierce, John P., 2001. "Does cigarette price influence adolescent experimentation?," Journal of Health Economics, Elsevier, vol. 20(2), pages 261-270, March.
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