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Heterogeneity in Smokers' Responses to Tobacco Control Policies

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  • Erik Nesson

Abstract

This paper uses unconditional quantile regression to estimate whether smokers' responses to tobacco control policies change across the distribution of smoking levels. I measure smoking behavior with the number of cigarettes smoked per day and also with serum cotinine levels, a continuous biomarker of nicotine exposure, using individual‐level repeated cross‐section data from the National Health and Nutrition Examination Surveys. I find that the cigarette taxes lead to reductions in both the number of cigarettes smoked per day and in smokers' cotinine levels. These reductions are most pronounced in the middle quantiles of both distributions in terms of marginal effects, but most pronounced in the lower quantiles in terms of tax elasticities. I do not find that higher cigarette taxes lead to statistically significant changes in the amount of nicotine smokers ingest from each cigarette. Copyright © 2015 John Wiley & Sons, Ltd.

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  • Erik Nesson, 2017. "Heterogeneity in Smokers' Responses to Tobacco Control Policies," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 206-225, February.
  • Handle: RePEc:wly:hlthec:v:26:y:2017:i:2:p:206-225
    DOI: 10.1002/hec.3289
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    1. Erik Nesson, 2017. "The Impact of Tobacco Control Policies on Adolescent Smoking: Comparing Self-Reports and Biomarkers," American Journal of Health Economics, MIT Press, vol. 3(4), pages 507-527, Fall.
    2. Alfredo Palacios & Andrea Alcaraz & Agustín Casarini & Federico Rodriguez Cairoli & Natalia Espinola & Dario Balan & Lucas Perelli & Federico Augustovski & Ariel Bardach & Andrés Pichon‐Riviere, 2023. "The health, economic and social burden of smoking in Argentina, and the impact of increasing tobacco taxes in a context of illicit trade," Health Economics, John Wiley & Sons, Ltd., vol. 32(11), pages 2655-2672, November.
    3. Carpenter, Christopher S. & Sansone, Dario, 2021. "Cigarette taxes and smoking among sexual minority adults," Journal of Health Economics, Elsevier, vol. 79(C).
    4. Friedson, Andrew I. & Rees, Daniel I., 2020. "Cigarette Taxes and Smoking in the Long Run," IZA Discussion Papers 13252, Institute of Labor Economics (IZA).
    5. Kajal Lahiri & Xian Li, 2020. "Smoking Behavior of Older Adults: A Panel Data Analysis Using HRS," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 18(3), pages 495-523, September.
    6. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    7. Vinish Shrestha, 2022. "Revisiting the Effects of Cigarette Taxes on Smoking Outcomes," Working Papers 2022-02, Towson University, Department of Economics, revised Oct 2022.
    8. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    9. Alex Rees-Jones & Kyle Rozema, 2023. "Price Isn’t Everything: Behavioral Response Around Changes In Sin Taxes," National Tax Journal, University of Chicago Press, vol. 76(1), pages 5-35.
    10. Zili Zhang & Rong Zheng, 2020. "The Impact of Cigarette Excise Tax Increases on Regular Drinking Behavior: Evidence from China," IJERPH, MDPI, vol. 17(9), pages 1-12, May.
    11. Cotti, Chad & Nesson, Erik & Tefft, Nathan, 2018. "The relationship between cigarettes and electronic cigarettes: Evidence from household panel data," Journal of Health Economics, Elsevier, vol. 61(C), pages 205-219.
    12. Crespi, Francesco & Liberati, Paolo & Paradiso, Massimo & Scialà, Antonio & Tedeschi, Simone, 2021. "Smokers are different: The impact of price increases on smoking reduction and downtrading," Economic Modelling, Elsevier, vol. 97(C), pages 326-334.
    13. Hoehn-Velasco, Lauren & Pesko, Michael & Phillips, Serena, 2022. "The Long-Term Impact of In-Utero Cigarette Taxes on Adult Prenatal Smoking," IZA Discussion Papers 15656, Institute of Labor Economics (IZA).
    14. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2020. "The effects of traditional cigarette and e-cigarette tax rates on adult tobacco product use," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 229-258, June.
    15. Karen Smith Conway & David P. Niles, 2017. "Cigarette Taxes, Smoking—and Exercise?," Health Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 1019-1036, August.
    16. Paolo Liberati & Francesco Crespi & Massimo Paradiso & Simone Tedeschi & Antonio Scialà, 2018. "Smokers Are Different: The Heterogeneity Of Smokers’ Responses To Price Increases," Departmental Working Papers of Economics - University 'Roma Tre' 0237, Department of Economics - University Roma Tre.

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