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How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey

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  • Angel López Nicolás

Abstract

This paper presents an econometric analysis of the effect of policy instruments such as prices, restrictions to use and health warnings on the decisions to start and quit smoking. The duration up to starting and up to quitting is represented with several parametric models for the hazard function, and statistical tests are used to choose the best specification. The estimates reveal that prices have a very weak effect on the duration up to starting. On the contrary, the duration up to quitting is shortened by increases in the prices of the cheapest varieties of cigarrettes in the Spanish market. This evidence suggests specific directions for change in the structure of tobacco taxes. Copyright © 2002 John Wiley & Sons, Ltd.

Suggested Citation

  • Angel López Nicolás, 2002. "How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey," Health Economics, John Wiley & Sons, Ltd., vol. 11(6), pages 521-535, September.
    • Handle: RePEc:wly:hlthec:v:11:y:2002:i:6:p:521-535
    DOI: 10.1002/hec.745
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    Cited by:

    1. van Ours, Jan C. & Williams, Jenny, 2007. "Cannabis prices and dynamics of cannabis use," Journal of Health Economics, Elsevier, vol. 26(3), pages 578-596, May.
    2. Etilé, Fabrice & Jones, Andrew M., 2011. "Schooling and smoking among the baby boomers - An evaluation of the impact of educational expansion in France," Journal of Health Economics, Elsevier, vol. 30(4), pages 811-831, July.
    3. Christian Bünnings, 2017. "Does new health information affect health behaviour? The effect of health events on smoking cessation," Applied Economics, Taylor & Francis Journals, vol. 49(10), pages 987-1000, February.
    4. Christian Bünnings, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 0459, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    5. Philip DeCicca & Donald Kenkel & Alan Mathios & Yoon‐Jeong Shin & Jae‐Young Lim, 2008. "Youth smoking, cigarette prices, and anti‐smoking sentiment," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 733-749, June.
    6. Jan C. van Ours, 2006. "Dynamics in the use of drugs," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1283-1294, December.
    7. Don Kenkel, 2012. "Health Behaviours Among Young People," Chapters, in: Andrew M. Jones (ed.), The Elgar Companion to Health Economics, Second Edition, chapter 6, Edward Elgar Publishing.
    8. David Madden, 2007. "Tobacco taxes and starting and quitting smoking: does the effect differ by education?," Applied Economics, Taylor & Francis Journals, vol. 39(5), pages 613-627.
    9. Göhlmann, Silja, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 27, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    10. G. Emmanuel Guindon & Guillermo R. Paraje & Ricardo Chávez, 2018. "Prices, Inflation, And Smoking Onset: The Case Of Argentina," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 424-445, January.
    11. Nonnemaker, James M. & Farrelly, Matthew C., 2011. "Smoking initiation among youth: The role of cigarette excise taxes and prices by race/ethnicity and gender," Journal of Health Economics, Elsevier, vol. 30(3), pages 560-567, May.
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    13. Silja Göhlmann, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    14. DeCicca, Philip & Kenkel, Don & Mathios, Alan, 2008. "Cigarette taxes and the transition from youth to adult smoking: Smoking initiation, cessation, and participation," Journal of Health Economics, Elsevier, vol. 27(4), pages 904-917, July.
    15. van Baal, Pieter H.M. & Brouwer, Werner B.F. & Hoogenveen, Rudolf T. & Feenstra, Talitha L., 2007. "Increasing tobacco taxes: A cheap tool to increase public health," Health Policy, Elsevier, vol. 82(2), pages 142-152, July.
    16. Göhlmann, Silja & Schmidt, Christoph M., 2008. "Smoking in Germany: Stylized Facts, Behavioral Models, and Health Policy," Ruhr Economic Papers 64, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    17. Christopoulou, Rebekka & Lillard, Dean R., 2015. "Is smoking behavior culturally determined? Evidence from British immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 78-90.
    18. repec:zbw:rwirep:0064 is not listed on IDEAS
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    20. Silja Göhlmann & Christoph M. Schmidt, 2008. "Smoking in Germany: Stylized Facts, Behavioral Models, and Health Policy," Ruhr Economic Papers 0064, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    21. Deliana Kostova & Frank Chaloupka & Ce Shang, 2015. "A duration analysis of the role of cigarette prices on smoking initiation and cessation in developing countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 279-288, April.

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    More about this item

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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