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Measuring the Effect of Policy on the Demand for Menthol Cigarettes: Evidence from Household-Level Purchase Data

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  • Esteban Petruzzello

    (University of Miami)

Abstract

I use detailed household-level data to investigate the potential impact of a ban on menthol cigarettes on smoking when compared to intervention policies such as taxes and public smoking restrictions. The results show that menthols are less addictive than non-menthols and that demand for menthol cigarettes is less price sensitive. Public smoking restrictions are unsuccessful in reducing menthol smoking, though they do reduce non-menthol consumption. Additionally, higher prices do not increase the likelihood of quitting for menthol smokers. These findings indicate that current policies are ineffective in curbing menthol smoking and strengthen the case for a complete ban.

Suggested Citation

  • Esteban Petruzzello, 2019. "Measuring the Effect of Policy on the Demand for Menthol Cigarettes: Evidence from Household-Level Purchase Data," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 422-445, June.
  • Handle: RePEc:pal:easeco:v:45:y:2019:i:3:d:10.1057_s41302-019-00139-2
    DOI: 10.1057/s41302-019-00139-2
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    More about this item

    Keywords

    Menthol cigarette; Addiction; Smoking cessation; Public smoking restriction; Cigarette tax;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

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