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New Evidence on Youth Smoking Behavior based on Experimental Price Increases

Author

Listed:
  • Hana Ross
  • Lisa M. Powell
  • John A. Tauras
  • Frank J. Chaloupka

Abstract

The high youth smoking prevalence remains an important public policy challenge into the 21st century. This study applies a unique approach to analyzing the impact of cigarette prices on youth smoking cessation by evaluating reactions among high school students to several alternative hypothetical price increases. It concludes that many young smokers believe that they would quit smoking or decrease their smoking intensity in response to a cigarette price increase. The estimated price elasticity of cessation is between 0.930 and 0.895. The results indicate that youth expect to change their smoking behavior even when the price change is relatively small. However, the behavioral change is most dramatic among those exposed to the largest price increases, suggesting a sustained impact of higher price on cigarette consumption. (JEL I18)

Suggested Citation

  • Hana Ross & Lisa M. Powell & John A. Tauras & Frank J. Chaloupka, 2005. "New Evidence on Youth Smoking Behavior based on Experimental Price Increases," Contemporary Economic Policy, Western Economic Association International, vol. 23(2), pages 195-210, April.
    • Handle: RePEc:bla:coecpo:v:23:y:2005:i:2:p:195-210
    DOI: 10.1093/cep/byi015
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    References listed on IDEAS

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    1. Brett Katzman & Sara Markowitz & Kerry Anne McGeary, 2002. "The Impact of Lending, Borrowing, and Anti-Smoking Policies on Cigarette Consumption by Teens," NBER Working Papers 8844, National Bureau of Economic Research, Inc.
    2. John A. Tauras, 1999. "The Transition to Smoking Cessation: Evidence from Multiple Failure Duration Analysis," NBER Working Papers 7412, National Bureau of Economic Research, Inc.
    3. Hana Ross & Frank J. Chaloupka, 2003. "The effect of cigarette prices on youth smoking," Health Economics, John Wiley & Sons, Ltd., vol. 12(3), pages 217-230, March.
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    Cited by:

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    2. Rashad, Inas, 2006. "Structural estimation of caloric intake, exercise, smoking, and obesity," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(2), pages 268-283, May.
    3. Pearl Bader & David Boisclair & Roberta Ferrence, 2011. "Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk Populations: A Knowledge Synthesis," IJERPH, MDPI, vol. 8(11), pages 1-22, October.
    4. Michael T. French & Ioana Popovici, 2011. "That instrument is lousy! In search of agreement when using instrumental variables estimation in substance use research," Health Economics, John Wiley & Sons, Ltd., vol. 20(2), pages 127-146, February.
    5. Seonghoon Hong & Alan R. Collins, 2010. "The Impact Of Antismoking Policies In Korea On Quit Success And Smoking Intentions," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 474-487, October.
    6. Line Bretteville-Jensen, Anne & Biørn, Erik & Selmer, Randi, 2011. "Quitting behaviour of cigarette smokers. Are there direct effects of a screening program?," Memorandum 07/2011, Oslo University, Department of Economics.

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    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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