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The impact of nicotine replacement therapies on cigarette demand

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  • Frank Chaloupka

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  • John Tauras

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Abstract

Over the past 20 years, several nicotine replacement therapies (NRTs) have been approved for use as smoking cessation aids, with over-the-counter use of these products approved beginning in 1996. To date, only one econometric study has examined the impact of NRT on cigarette demand, providing limited evidence that the availability of these products has reduced cigarette demand. This paper adds to this limited literature by examining the impact of NRT availability, pricing, and use on U.S. cigarette demand, concluding that NRT is a substitute for cigarettes and that the elasticity of cigarette demand with respect to NRT sales is-0.06. Copyright Academy of Economics and Finance 2004

Suggested Citation

  • Frank Chaloupka & John Tauras, 2004. "The impact of nicotine replacement therapies on cigarette demand," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(3), pages 395-403, September.
  • Handle: RePEc:spr:jecfin:v:28:y:2004:i:3:p:395-403
    DOI: 10.1007/BF02751741
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    File URL: http://hdl.handle.net/10.1007/BF02751741
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    References listed on IDEAS

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    1. John A. Tauras & Frank J. Chaloupka, 2001. "The Demand for Nicotine Replacement Therapies," NBER Working Papers 8332, National Bureau of Economic Research, Inc.
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    Cited by:

    1. Richard Cebula & Maggie Foley & Robert Houmes, 2014. "Empirical analysis of the impact of cigarette excise taxes on cigarette consumption: estimates from recent state-level data," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 38(1), pages 164-180, January.

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