IDEAS home Printed from
   My bibliography  Save this article

Cigarette Demand, Structural Change, and Advertising Bans: International Evidence, 1970-1995


  • Nelson Jon P.

    () (Pennsylvania State University)


Using panel data for a cross-section of countries, several previous studies estimate the effect of advertising bans on cigarette consumption. These studies suffer from three problems: (1) structural change in cigarette demand functions; (2) endogeneity of advertising bans; and (3) non-stationarity of cigarette consumption data. Using annual data for 20 OECD countries, this study tests for unit roots. Growth rates of cigarette consumption (log differences) are stationary, but levels data are not. I estimate single-equation panel models for 1970-1995 and test formally for structural change. The tests and recursive coefficient estimates confirm a regime change beginning in 1985. Results for different time periods are reported for the effects of price, income, health warnings, country fixed-effects, and moderate and strong advertising bans. The study also considers the possibility of endogenous advertising bans. A public-choice model is estimated as a two-equation model of advertising legislation and cigarette demand. The adoption of advertising bans is modeled as a Poisson count regression, and fitted values for the number of banned media are used as instruments in the demand equation. The results in the paper fail to demonstrate that advertising bans reduce aggregate cigarette consumption. Empirical results in previous studies are not robust to use of stationary data; refinements in model specification; different time periods; and endogeneity of advertising bans. Due to a decline in smoking prevalence, especially among males, there was a change in the political climate in favor of stronger restrictions on cigarette advertising. Overall, advertising bans have had no effect on cigarette consumption, regardless of the time period considered or the severity of the bans.

Suggested Citation

  • Nelson Jon P., 2003. "Cigarette Demand, Structural Change, and Advertising Bans: International Evidence, 1970-1995," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 2(1), pages 1-29, August.
  • Handle: RePEc:bpj:bejeap:v:contributions.2:y:2003:i:1:n:10

    Download full text from publisher

    File URL:
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.

    As the access to this document is restricted, you may want to search for a different version of it.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Blecher, Evan, 2008. "The impact of tobacco advertising bans on consumption in developing countries," Journal of Health Economics, Elsevier, vol. 27(4), pages 930-942, July.
    2. Jeffrey E. Harris & Ana I. Balsa & Patricia Triunfo, 2014. "Campaña antitabaco en Uruguay: Impacto en la decisión de dejar de fumar durante el embarazo y en el peso al nacer," Documentos de Trabajo/Working Papers 1401, Facultad de Ciencias Empresariales y Economia. Universidad de Montevideo..
    3. Blecher, Evan, 2015. "Taxes on tobacco, alcohol and sugar sweetened beverages: Linkages and lessons learned," Social Science & Medicine, Elsevier, vol. 136, pages 175-179.
    4. repec:spr:ijphth:v:62:y:2017:i:8:d:10.1007_s00038-017-0980-7 is not listed on IDEAS
    5. Jeffrey E. Harris & Ana Balsa & Patricia Triunfo, 2014. "Campaña antitabaco en Uruguay:Impacto en la decisión de dejar de fumar durante el embarazo y en el peso al nacer," Documentos de Trabajo (working papers) 0114, Department of Economics - dECON.
    6. Sari, Nazmi, 2013. "On anti-smoking regulations and tobacco consumption," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 43(C), pages 60-67.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bpj:bejeap:v:contributions.2:y:2003:i:1:n:10. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Peter Golla). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.