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Taxes, Cigarette Consumption, and Smoking Intensity: Reply

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  • J?r?me Adda
  • Francesca Cornaglia

Abstract

This paper shows that smoking intensity, i.e. the amount of nicotine extracted per cigarette smoked, responds to changes in excise taxes and tobacco prices. We exploit NHANES data covering the period 1988 to 2006 across many US states. Moreover, using panel data from the Coronary Artery Risk Development in Young Adults (CARDIA) study, we provide new evidence on the importance of cotinine measures in explaining long-run smoking behavior. We show the importance of smoking intensity as a long-run determinant of smoking cessation. We also investigate the sensitivity of smoking cessation to changes in excise taxes and their interaction with smoking intensity.

Suggested Citation

  • J?r?me Adda & Francesca Cornaglia, 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply," American Economic Review, American Economic Association, vol. 103(7), pages 3102-3114, December.
  • Handle: RePEc:aea:aecrev:v:103:y:2013:i:7:p:3102-14 Note: DOI: 10.1257/aer.103.7.3102
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    References listed on IDEAS

    as
    1. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    2. Herwartz, Helmut & Lütkepohl, Helmut, 2014. "Structural vector autoregressions with Markov switching: Combining conventional with statistical identification of shocks," Journal of Econometrics, Elsevier, pages 104-116.
    3. J?r?me Adda & Francesca Cornaglia, 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply," American Economic Review, American Economic Association, pages 3102-3114.
    4. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, pages 1013-1028.
    5. Jérôme Adda & Francesca Cornaglia, 2010. "The Effect of Bans and Taxes on Passive Smoking," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 1-32, January.
    6. A. Colin Cameron & Jonah B. Gelbach & Douglas L. Miller, 2008. "Bootstrap-Based Improvements for Inference with Clustered Errors," The Review of Economics and Statistics, MIT Press, pages 414-427.
    7. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, Oxford University Press, vol. 119(1), pages 249-275.
    8. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, pages 1013-1028.
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    Cited by:

    1. Irvine Ian J. & Nguyen Van Hai, 2014. "Retail Tobacco Display Bans," Forum for Health Economics & Policy, De Gruyter, vol. 17(2), pages 1-27, September.
    2. Kyle Rozema & Nicolas Ziebarth, 2015. "Behavioral Responses to Taxation: Cigarette Taxes and Food Stamp Take-Up," Working Papers 150015, Canadian Centre for Health Economics.
    3. Odermatt, Reto & Stutzer, Alois, 2015. "Smoking bans, cigarette prices and life satisfaction," Journal of Health Economics, Elsevier, pages 176-194.
    4. J?r?me Adda & Francesca Cornaglia, 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply," American Economic Review, American Economic Association, pages 3102-3114.

    More about this item

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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