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Unemployment, insurance and smoking

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  • Rajeev Goel

Abstract

Using recent state-level data from the United States, this article examines new influences on cigarette demand. In particular, we uniquely focus on the effects of unemployment and health insurance coverage on smoking. Results show that higher cigarette prices, a lack of health insurance and restrictions on smoking at home, all lead to reduced smoking. On the other hand, literacy, income, unemployment, workplace smoking restrictions, smokeless tobacco taxes and tobacco-producing states do not seem to have an appreciable impact. The magnitude of the price elasticity of demand is greater than that found in the pre-MSA era. Policy implications are discussed.

Suggested Citation

  • Rajeev Goel, 2008. "Unemployment, insurance and smoking," Applied Economics, Taylor & Francis Journals, vol. 40(20), pages 2593-2599.
  • Handle: RePEc:taf:applec:v:40:y:2008:i:20:p:2593-2599
    DOI: 10.1080/00036840600970278
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    References listed on IDEAS

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    1. Rajeev Goel, 2007. "Costs of smoking and attempts to quit," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 853-857.
    2. Christopher J. Ruhm, 2000. "Are Recessions Good for Your Health?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 617-650.
    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. Rajeev Goel & Michael Nelson, 2005. "Tobacco policy and tobacco use: differences across tobacco types, gender and age," Applied Economics, Taylor & Francis Journals, vol. 37(7), pages 765-771.
    5. 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.
    6. Viscusi, W Kip, 1999. "The Governmental Composition of the Insurance Costs of Smoking," Journal of Law and Economics, University of Chicago Press, vol. 42(2), pages 575-609, October.
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    Cited by:

    1. Roelfs, David J. & Shor, Eran & Davidson, Karina W. & Schwartz, Joseph E., 2011. "Losing life and livelihood: A systematic review and meta-analysis of unemployment and all-cause mortality," Social Science & Medicine, Elsevier, vol. 72(6), pages 840-854, March.
    2. Goel, Rajeev K., 2014. "Economic stress and cigarette smoking: Evidence from the United States," Economic Modelling, Elsevier, vol. 40(C), pages 284-289.

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