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U.S. Cigarette Demand: 1944-2004

Author Info

Listed author(s):
  • Cheng Kai-Wen

    ()

    (University of California, San Francisco)

  • Kenkel Don S

    ()

    (Cornell University)

Abstract

We analyze individual-level data on cigarette smoking from 23 national cross-sectional surveys conducted by the Gallup Poll from 1944 through 2004. We estimate standard two-part models of cigarette demand as a function of demographics, income, and cigarette prices. Over the sixty year time-span covered in our data, smoking participation falls from almost 50 percent to 22 percent. We find that the influences of key demographic factors on cigarette demand change over time: the gender difference in smoking rates almost disappears, the black-white difference reverses, a strong gradient with schooling emerges, and a negative income elasticity emerges.

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Article provided by De Gruyter in its journal The B.E. Journal of Economic Analysis & Policy.

Volume (Year): 10 (2010)
Issue (Month): 1 (August)
Pages: 1-21

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Handle: RePEc:bpj:bejeap:v:10:y:2010:i:1:n:78
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  1. Angus Deaton, 2008. "Income, Health, and Well-Being around the World: Evidence from the Gallup World Poll," Journal of Economic Perspectives, American Economic Association, vol. 22(2), pages 53-72, Spring.
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  6. Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, vol. 84(3), pages 396-418, June.
  7. Keeler, Theodore E. & Hu, Teh-wei & Manning, Willard G. & Sung, Hai-Yen, 2001. "State Tobacco Taxation, Education and Smoking: Controlling for the Effects of Omitted Variables," National Tax Journal, National Tax Association, vol. 54(n. 1), pages 83-102, March.
  8. Madden, David, 2008. "Sample selection versus two-part models revisited: The case of female smoking and drinking," Journal of Health Economics, Elsevier, vol. 27(2), pages 300-307, March.
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  10. Schwartz, Amy Ellen & Ellen, Ingrid Gould & Voicu, Ioan & Schill, Michael H., 2006. "The external effects of place-based subsidized housing," Regional Science and Urban Economics, Elsevier, vol. 36(6), pages 679-707, November.
  11. Gregory J. Colman & Dahlia K. Remler, 2008. "Vertical equity consequences of very high cigarette tax increases: If the poor are the ones smoking, how could cigarette tax increases be progressive?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 376-400.
  12. repec:pri:cheawb:deaton_income_health_and_wellbeing_around_the_world_evidence_%20from_gall is not listed on IDEAS
  13. John A. Tauras, 2006. "Smoke-Free Air Laws, Cigarette Prices, and Adult Cigarette Demand," Economic Inquiry, Western Economic Association International, vol. 44(2), pages 333-342, April.
  14. Ohtani, Kazuhiro & Kakimoto, Sumio & Abe, Kenzo, 1990. "A gradual switching regression model with a flexible transition path," Economics Letters, Elsevier, vol. 32(1), pages 43-48, January.
  15. Keeler, Theodore E. & Hu, Teh-wei & Manning, Willard G. & Sung, Hai-Yen, 2001. "State Tobacco Taxation, Education and Smoking: Controlling for the Effects of Omitted Variables," National Tax Journal, National Tax Association, vol. 54(1), pages 83-102, March.
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Cited by:

  1. Pabilonia, Sabrina Wulff, 2014. "The Effects of the Great Recession on Teenagers' Risky Health Behaviors and Time Use," IZA Discussion Papers 8204, Institute for the Study of Labor (IZA).
  2. Mocan, Naci & Raschke, Christian & Unel, Bulent, 2015. "The impact of mothers’ earnings on health inputs and infant health," Economics & Human Biology, Elsevier, vol. 19(C), pages 204-223.
  3. Raschke, Christian, 2012. "The Impact of the German Child Benefit on Child Well-Being," IZA Discussion Papers 6980, Institute for the Study of Labor (IZA).
  4. Michael T. Owyang & E. Katarina Vermann, 2012. "Where there’s a smoking ban, there’s still fire," Review, Federal Reserve Bank of St. Louis, issue July, pages 265-286.
  5. Erdal Tekin & Chandler McClellan & Karen Jean Minyard, 2013. "Health and Health Behaviors during the Worst of Times," NBER Working Papers 19234, National Bureau of Economic Research, Inc.
  6. Wehby, George L. & Murray, Jeffrey C. & Wilcox, Allen & Lie, Rolv T., 2012. "Smoking and body weight: Evidence using genetic instruments," Economics & Human Biology, Elsevier, vol. 10(2), pages 113-126.
  7. Tekin, Erdal & McClellan, Chandler & Minyard, Karen Jean, 2013. "Health and Health Behaviors during the Worst of Times: Evidence from the Great Recession," IZA Discussion Papers 7538, Institute for the Study of Labor (IZA).

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