IDEAS home Printed from https://ideas.repec.org/a/bpj/fhecpo/v18y2015i1p1-24n1.html
   My bibliography  Save this article

Long-Term Effects of Tobacco Prices Faced by Adolescents

Author

Listed:
  • Auld M. Christopher

    (Department of Economics, University of Victoria, PO Box 1700 STN CSC, Victoria, BC V8W 2Y2, Canada)

  • Zarrabi Mahmood

    (Senior Economist, Alberta Health Services, Edmonton, Alberta, Canada.)

Abstract

Tobacco taxes in Canada varied markedly across time and across regions in the early 1990s. We exploit this variation to estimate the long reach of prices faced in adolescence on smoking behavior roughly a decade later in early to mid-adulthood. Results from a variety of econometric approaches suggest that there is a small but detectable long-run effect of price faced during adolescence. A 10% increase in prices faced during adolescence, holding contemporaneous prices constant, leads to roughly a 1% reduction in adult smoking propensity and intensity. The results are somewhat sensitive to specification and to how price during adolescence is measured.

Suggested Citation

  • Auld M. Christopher & Zarrabi Mahmood, 2015. "Long-Term Effects of Tobacco Prices Faced by Adolescents," Forum for Health Economics & Policy, De Gruyter, vol. 18(1), pages 1-24, January.
    • Handle: RePEc:bpj:fhecpo:v:18:y:2015:i:1:p:1-24:n:1
    DOI: 10.1515/fhep-2014-0005
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/fhep-2014-0005
    Download Restriction: For access to full text, subscription to the journal or payment for the individual article is required.
    File URL: https://libkey.io/10.1515/fhep-2014-0005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    1. Galbraith, John W. & Kaiserman, Murray, 1997. "Taxation, smuggling and demand for cigarettes in Canada: Evidence from time-series data," Journal of Health Economics, Elsevier, vol. 16(3), pages 287-301, June.
    2. Anindya Sen & Tony Wirjanto, 2010. "Estimating the impacts of cigarette taxes on youth smoking participation, initiation, and persistence: empirical evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1264-1280, November.
    3. Carpenter, Christopher & Cook, Philip J., 2008. "Cigarette taxes and youth smoking: New evidence from national, state, and local Youth Risk Behavior Surveys," Journal of Health Economics, Elsevier, vol. 27(2), pages 287-299, March.
    4. Nikolay Gospodinov & Ian Irvine, 2005. "A ‘long march’ perspective on tobacco use in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(2), pages 366-393, May.
    5. Lewit, Eugene M & Coate, Douglas & Grossman, Michael, 1981. "The Effects of Government Regulation on Teenage Smoking," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 545-569, December.
    6. Philip DeCicca & Donald Kenkel & Alan Mathios & Yoon‐Jeong Shin & Jae‐Young Lim, 2008. "Youth smoking, cigarette prices, and anti‐smoking sentiment," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 733-749, June.
    7. Rajeev Goel, 2004. "Cigarette demand in Canada and the US-Canadian cigarette smuggling," Applied Economics Letters, Taylor & Francis Journals, vol. 11(9), pages 537-540.
    8. David Neumark & Olena Nizalova, 2007. "Minimum Wage Effects in the Longer Run," Journal of Human Resources, University of Wisconsin Press, vol. 42(2).
    9. David Aristei & Luca Pieroni, 2009. "Addiction, social interactions and gender differences in cigarette consumption," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 245-272, August.
    10. M. Christopher Auld, 2005. "Causal effect of early initiation on adolescent smoking patterns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 709-734, August.
    11. John A. Tauras & Frank J. Chaloupka, 1999. "Price, Clean Indoor Air, and Cigarette Smoking: Evidence from the Longitudinal Data for Young Adults," NBER Working Papers 6937, National Bureau of Economic Research, Inc.
    12. Cawley, John & Markowitz, Sara & Tauras, John, 2004. "Lighting up and slimming down: the effects of body weight and cigarette prices on adolescent smoking initiation," Journal of Health Economics, Elsevier, vol. 23(2), pages 293-311, March.
    13. Jones, Andrew M, 1989. "A Double-Hurdle Model of Cigarette Consumption," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 4(1), pages 23-39, Jan.-Mar..
    14. Gruber, Jonathan & Sen, Anindya & Stabile, Mark, 2003. "Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada," Journal of Health Economics, Elsevier, vol. 22(5), pages 821-842, September.
    15. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    16. Mark Stehr, 2007. "The effect of cigarette taxes on smoking among men and women," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1333-1343.
    17. Glied, Sherry, 2002. "Youth tobacco control: reconciling theory and empirical evidence," Journal of Health Economics, Elsevier, vol. 21(1), pages 117-135, January.
    18. Nonnemaker, James M. & Farrelly, Matthew C., 2011. "Smoking initiation among youth: The role of cigarette excise taxes and prices by race/ethnicity and gender," Journal of Health Economics, Elsevier, vol. 30(3), pages 560-567, May.
    19. Mark Stehr, 2007. "The effect of cigarette taxes on smoking among men and women," Health Economics, John Wiley & Sons, Ltd., vol. 16(12), pages 1333-1343, December.
    20. M. Christopher Auld, 2005. "Causal effect of early initiation on adolescent smoking patterns," Canadian Journal of Economics, Canadian Economics Association, vol. 38(3), pages 709-734, August.
    21. Glied, S., 2003. "Is smoking delayed smoking averted?," American Journal of Public Health, American Public Health Association, vol. 93(3), pages 412-416.
    22. Donald S. Kenkel & Dean R. Lillard & Alan D. Mathios, 2004. "Accounting for misclassification error in retrospective smoking data," Health Economics, John Wiley & Sons, Ltd., vol. 13(10), pages 1031-1044, October.
    23. Eisenberg Daniel & Rowe Brian, 2009. "The Effect of Smoking in Young Adulthood on Smoking Later in Life: Evidence based on the Vietnam Era Draft Lottery," Forum for Health Economics & Policy, De Gruyter, vol. 12(2), pages 1-34, June.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Friedson, Andrew & Li, Moyan & Meckel, Katherine & Rees, Daniel I. & Sacks, Daniel W., 2023. "Cigarette taxes, smoking, and health in the long run," Journal of Public Economics, Elsevier, vol. 222(C).
    2. Hoehn-Velasco, Lauren & Pesko, Michael & Phillips, Serena, 2022. "The Long-Term Impact of In-Utero Cigarette Taxes on Adult Prenatal Smoking," IZA Discussion Papers 15656, Institute of Labor Economics (IZA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Sen Anindya & Ariizumi Hideki & Driambe Daciana, 2010. "Do Changes In Cigarette Taxes Impact Youth Smoking? Evidence from Canadian Provinces," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-25, August.
    3. Anindya Sen & Tony Wirjanto, 2010. "Estimating the impacts of cigarette taxes on youth smoking participation, initiation, and persistence: empirical evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1264-1280, November.
    4. DeCicca, Philip & Kenkel, Don & Mathios, Alan, 2008. "Cigarette taxes and the transition from youth to adult smoking: Smoking initiation, cessation, and participation," Journal of Health Economics, Elsevier, vol. 27(4), pages 904-917, July.
    5. Sunday Azagba & Mesbah Sharaf, 2011. "Cigarette Taxes and Smoking Participation: Evidence from Recent Tax Increases in Canada," IJERPH, MDPI, vol. 8(5), pages 1-18, May.
    6. Cinzia Novi & Rowena Jacobs & Matteo Migheli, 2020. "Smoking inequality across genders and socio-economic positions. Evidence from Italian data," Journal of Bioeconomics, Springer, vol. 22(3), pages 177-203, October.
    7. Lillard, Dean R. & Molloy, Eamon & Sfekas, Andrew, 2013. "Smoking initiation and the iron law of demand," Journal of Health Economics, Elsevier, vol. 32(1), pages 114-127.
    8. Sen Choudhury, Rebecca & Conway, Karen Smith, 2020. "The effect of tobacco policies on youth physical activity," Economics & Human Biology, Elsevier, vol. 38(C).
    9. Anindya Sen, 2009. "Estimating the impacts of household behavior on youth smoking: evidence from Ontario, Canada," Review of Economics of the Household, Springer, vol. 7(2), pages 189-218, June.
    10. Nonnemaker, James M. & Farrelly, Matthew C., 2011. "Smoking initiation among youth: The role of cigarette excise taxes and prices by race/ethnicity and gender," Journal of Health Economics, Elsevier, vol. 30(3), pages 560-567, May.
    11. Deliana Kostova & Frank Chaloupka & Ce Shang, 2015. "A duration analysis of the role of cigarette prices on smoking initiation and cessation in developing countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 279-288, April.
    12. Di Novi, Cinzia & Jacobs, Rowena & Migheli, Matteo, 2018. "Smoking Inequality across Genders and Socio-economic Classes. Evidence from Longitudinal Italian Data," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201802, University of Turin.
    13. G. Guindon, 2014. "The impact of tobacco prices on smoking onset in Vietnam: duration analyses of retrospective data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(1), pages 19-39, January.
    14. Anh Ngo & Geoffrey T. Fong & Lorraine V. Craig & Ce Shang, 2019. "Analysis of Gender Differences in the Impact of Taxation and Taxation Structure on Cigarette Consumption in 17 ITC Countries," IJERPH, MDPI, vol. 16(7), pages 1-11, April.
    15. Johanna Catherine MacLean & Asia Sikora Kessler & Donald S. Kenkel, 2016. "Cigarette Taxes and Older Adult Smoking: Evidence from the Health and Retirement Study," Health Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 424-438, April.
    16. Deliana Kostova & Hana Ross & Evan Blecher & Sara Markowitz, 2010. "Prices and Cigarette Demand: Evidence from Youth Tobacco Use in Developing Countries," NBER Working Papers 15781, National Bureau of Economic Research, Inc.
    17. David Aristei & Luca Pieroni, 2009. "Addiction, social interactions and gender differences in cigarette consumption," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 245-272, August.
    18. Shelby Gerking & Raman Khaddaria, 2012. "Perceptions Of Health Risk And Smoking Decisions Of Young People," Health Economics, John Wiley & Sons, Ltd., vol. 21(7), pages 865-877, July.
    19. Kazuki Kamimura, 2012. "Effectiveness of cigarette tax in Japan," Keio/Kyoto Joint Global COE Discussion Paper Series 2011-035, Keio/Kyoto Joint Global COE Program.
    20. Shrestha, Vinish, 2019. "Cigarette prices and driving fatalities among youths," Economics Letters, Elsevier, vol. 184(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    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:fhecpo:v:18:y:2015:i:1:p:1-24:n:1. See general information about how to correct material in RePEc.

    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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.