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Tobacco Substitution and the Poor

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Author Info

  • Steven F. Koch

    ()
    (Department of Economics, University of Pretoria)

  • Gauthier Tshiswaka-Kashalala

    ()
    (Department of Transportation, South Africa)

Abstract

Tobacco control policies have effectively raised the price of cigarettes and other tobacco products. However, these price increases have been shown to disproportionately fall upon poorer households, with fewer resources. In this analysis, we provide an initial indication of the effect increased prices might have on household allocations, by considering substitution and complementation related to tobacco consumption. Our results show substitution between tobacco and most household consumption items, although elasticities tend to be highest amongst the poorest households.

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Bibliographic Info

Paper provided by University of Pretoria, Department of Economics in its series Working Papers with number 200832.

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Length: 34 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:pre:wpaper:200832

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Related research

Keywords: Crowd-out; Crowd-in; 3SLS; Tobacco Substitution Elasticity;

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