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Tobacco Substitution and the Poor

Author

Listed:
  • 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.

Suggested Citation

  • Steven F. Koch & Gauthier Tshiswaka-Kashalala, 2008. "Tobacco Substitution and the Poor," Working Papers 200832, University of Pretoria, Department of Economics.
    • Handle: RePEc:pre:wpaper:200832
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    References listed on IDEAS

    as
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    Cited by:

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    2. Nyagwachi, Abel Otwori & Chelwa, Grieve & van Walbeek, Corné, 2020. "The effect of tobacco- and alcohol-control policies on household spending patterns in Kenya: An approach using matched difference in differences," Social Science & Medicine, Elsevier, vol. 256(C).
    3. Nomusa Yolanda Nkomo & Mduduzi Biyase & Beatrice D. Simo-Kengne, 2023. "The Effects of Inequality on the Substitution of Essential Goods for Tobacco Smoking in South Africa," Economies, MDPI, vol. 11(6), pages 1-23, May.
    4. Koch, Steven & Alaba, Olufunke, 2010. "On health insurance and household decisions: A treatment effect analysis," Social Science & Medicine, Elsevier, vol. 70(2), pages 175-182, January.

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    More about this item

    Keywords

    Crowd-out; Crowd-in; 3SLS; Tobacco Substitution Elasticity;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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