How Important are Tobacco Prices in the Propensity to Start and Quit Smoking? An Analysis of Smoking Histories from the Spanish National Health Survey

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How Important are Tobacco Prices in the Propensity to Start and Quit Smoking? An Analysis of Smoking Histories from the Spanish National Health Survey

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Ángel López Nicolás

Abstract

This paper analyses the effect of tobacco prices on the propensity to start and quit smoking using a pool of the 1993, 1995 and 1997 editions of the Spanish National Health Surveys. The estimates for several parametric models of the hazard rate for starting and quitting suggest that i) The public health measures applied as of 1992 have had a significative effect on both reducing the hazard of starting and increasing the hazard of quitting, ii) Prices have a very weak effect on the hazard of starting in the male population and no significant effect in the female population, iii) The price floor of cigarrettes, proxied by the average price of a pack of black cigarrettes, has a significant effect on the quitting hazard which is robust across specifications and applies to both men and women. The implied price elasticity of the time up to quitting is situated around -1.4.

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Paper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Working Papers, Research Center on Health and Economics with number 548.

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Date of creation: Feb 2001
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Handle: RePEc:upf:upfses:548

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Keywords: Smoking; taxes; health; care;

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Find related papers by JEL classification:
C5 - Mathematical and Quantitative Methods - - Econometric Modeling
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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Sergi Jiménez-Martín & José M. Labeaga & Angel López, 1998. "Participation, heterogeneity and dynamics in tobacco consumption: evidence from cohort data," Health Economics, John Wiley & Sons, Ltd., vol. 7(5), pages 401-414.
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Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547. [Downloadable!] (restricted)
Other versions:
- Martin Forster & Andrew Jones, 2000. "The role of tobacco taxes in starting and quitting smoking: duration analysis of British data," Working Papers 176chedp, Centre for Health Economics, University of York. [Downloadable!]
Douglas, Stratford, 1998. "The Duration of the Smoking Habit," Economic Inquiry, Oxford University Press, vol. 36(1), pages 49-64, January.
Namkee Ahn & Josée Alberto Molina, . "Smoking in Spain: Analysis of Initiation and Cessation," Working Papers 2001-02, FEDEA. [Downloadable!]
Labeaga, Jose M., 1999. "A double-hurdle rational addiction model with heterogeneity: Estimating the demand for tobacco," Journal of Econometrics, Elsevier, vol. 93(1), pages 49-72, November. [Downloadable!] (restricted)
Frank J. Chaloupka & Kenneth E. Warner, 1999. "The Economics of Smoking," NBER Working Papers 7047, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627 Elsevier. [Downloadable!] (restricted)
John A. Tauras & Frank J. Chaloupka, 1999. "Determinants of Smoking Cessation: An Analysis of Young Adult Men and Women," NBER Working Papers 7262, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Peters, Simon, 2000. "On the Use of the RESET Test in Micro-econometric Models," Applied Economics Letters, Taylor and Francis Journals, vol. 7(6), pages 361-65, June. [Downloadable!] (restricted)
Martin Forster & Andrew M. Jones, . "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York. [Downloadable!]
Douglas, Stratford & Hariharan, Govind, 1994. "The hazard of starting smoking: Estimates from a split population duration model," Journal of Health Economics, Elsevier, vol. 13(2), pages 213-230, July. [Downloadable!] (restricted)

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