How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey
AbstractThis 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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Bibliographic InfoPaper provided by Department of Economics and Business, Universitat Pompeu Fabra in its series Working Papers, Research Center on Health and Economics with number 548.
Date of creation: Feb 2001
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Web page: http://www.econ.upf.edu/
Smoking; taxes; health; care;
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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