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Effect of generic cigarettes on US cigarette demand and smuggling

Author

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  • Goel, Rajeev K.

Abstract

This paper examines the effects of generic cigarettes on overall cigarette demand and smuggling, and studies influences of casual and organized smuggling for the United States. Generic cigarettes lower the price elasticity and diminish the effect of formal smuggling.

Suggested Citation

  • Goel, Rajeev K., 2012. "Effect of generic cigarettes on US cigarette demand and smuggling," Economics Letters, Elsevier, vol. 115(1), pages 114-117.
  • Handle: RePEc:eee:ecolet:v:115:y:2012:i:1:p:114-117
    DOI: 10.1016/j.econlet.2011.11.021
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    References listed on IDEAS

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    1. Baltagi, Badi H & Levin, Dan, 1986. "Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 148-155, February.
    2. Sobel, Russell S & Garrett, Thomas A, 1997. "Taxation and Product Quality: New Evidence from Generic Cigarettes," Journal of Political Economy, University of Chicago Press, vol. 105(4), pages 880-887, August.
    3. Rajeev Goel & Rati Ram, 2004. "Quantile-regression estimates of cigarette demand elasticities for the United States," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(3), pages 413-421, September.
    4. Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627 Elsevier.
    5. Lanoie, Paul & Leclair, Paul, 1998. "Taxation or regulation:: Looking for a good anti-smoking policy," Economics Letters, Elsevier, vol. 58(1), pages 85-89, January.
    6. Craig A. Gallet, 2003. "Advertising and Restrictions in the Cigarette Industry: Evidence of State-by-State Variation," Contemporary Economic Policy, Western Economic Association International, vol. 21(3), pages 338-348, July.
    7. Craig A. Gallet & John A. List, 2003. "Cigarette demand: a meta-analysis of elasticities," Health Economics, John Wiley & Sons, Ltd., vol. 12(10), pages 821-835.
    8. Goel, Rajeev K. & Nelson, Michael A., 2007. "The Master Settlement Agreement and cigarette tax policy," Journal of Policy Modeling, Elsevier, vol. 29(3), pages 431-438.
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    More about this item

    Keywords

    Generic cigarettes; Smuggling; Smoking; Demand;

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I10 - Health, Education, and Welfare - - Health - - - General

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