Cigarette taxes and older adult smoking: Evidence from recent large tax increases
While recent evidence casts some doubt, it is generally accepted that the price sensitivity of smoking varies inversely with age. We investigate the responsiveness of older adult smoking using variation from recent historically large cigarette tax increases in the United States. Using data from the Behavioral Risk Factor Surveillance System from 2000 to 2005, we find consistent evidence that higher taxes reduced smoking participation by older adults, especially those who are less educated and live in low-income households. Our findings run contrary to existing evidence which suggests that cessation behavior by older adults is not sensitive to price. Since a large literature suggests smoking cessation even later in life reduces morbidity and increases longevity, our findings may represent substantial gains in health among tax-induced quitters.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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 545-69, December.
- Eugene M. Lewit & Douglas Coate & Michael Grossman, 1981. "The Effects of Government Regulation on Teenage Smoking," NBER Working Papers 0655, National Bureau of Economic Research, Inc.
- Matthew C. Farrelly & Jeremy W. Bray & Terry Pechacek & Trevor Woollery, 2001. "Response by Adults to Increases in Cigarette Prices by Sociodemographic Characteristics," Southern Economic Journal, Southern Economic Association, vol. 68(1), pages 156-165, July.
- Philip DeCicca & Donald Kenkel & Alan Mathios, 2002. "Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 144-169, February.
- Smith, V. Kerry & Taylor, Donald H., Jr. & Sloan, Frank A. & Johnson, F. Reed & Desvousges, William H., 2000.
"Do Smokers Respond to Health Shocks?,"
00-08, Duke University, Department of Economics.
- Gruber, Jonathan & Frakes, Michael, 2006. "Does falling smoking lead to rising obesity?," Journal of Health Economics, Elsevier, vol. 25(2), pages 183-197, March.
- Ruhm, Christopher J., 2003.
"Healthy Living in Hard Times,"
IZA Discussion Papers
711, Institute for the Study of Labor (IZA).
- 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.
- Justin G. Trogdon & Frank A. Sloan, 2006. "Cigarette Taxes and the Master Settlement Agreement," Economic Inquiry, Western Economic Association International, vol. 44(4), pages 729-739, October.
- Christopher Carpenter & Philip J. Cook, 2007. "Cigarette Taxes and Youth Smoking: New Evidence from National, State, & Local Youth Risk Behavior Surveys," NBER Working Papers 13046, National Bureau of Economic Research, Inc.
- Eugene M. Lewit & Douglas Coate, 1981.
"The Potential for Using Excise Taxes to Reduce Smoking,"
NBER Working Papers
0764, National Bureau of Economic Research, Inc.
- Lewit, Eugene M. & Coate, Douglas, 1982. "The potential for using excise taxes to reduce smoking," Journal of Health Economics, Elsevier, vol. 1(2), pages 121-145, August.
- Jérôme Adda & Francesca Cornaglia, 2006.
"Taxes, Cigarette Consumption, and Smoking Intensity,"
American Economic Review,
American Economic Association, vol. 96(4), pages 1013-1028, September.
- Adda, Jérôme & Cornaglia, Francesca, 2005. "Taxes, Cigarette Consumption and Smoking Intensity," IZA Discussion Papers 1849, Institute for the Study of Labor (IZA).
- Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May.
- William N. Evans & Matthew C. Farrelly & Edward Montgomery, 1996.
"Do Workplace Smoking Bans Reduce Smoking?,"
NBER Working Papers
5567, National Bureau of Economic Research, Inc.
- Gruber, Jonathan & Koszegi, Botond, 2004. "Tax incidence when individuals are time-inconsistent: the case of cigarette excise taxes," Journal of Public Economics, Elsevier, vol. 88(9-10), pages 1959-1987, August.
- Frank A. Sloan & Jan Ostermann & Christopher Conover & Donald H. Taylor, Jr. & Gabriel Picone, 2006. "The Price of Smoking," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262693453.
- Frank J. Chaloupka & Henry Wechsler, 1995.
"Price, Tobacco Control Policies and Smoking Among Young Adults,"
NBER Working Papers
5012, National Bureau of Economic Research, Inc.
- Chaloupka, Frank J. & Wechsler, Henry, 1997. "Price, tobacco control policies and smoking among young adults," Journal of Health Economics, Elsevier, vol. 16(3), pages 359-373, June.
When requesting a correction, please mention this item's handle: RePEc:eee:jhecon:v:27:y:2008:i:4:p:918-929. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.