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The continuum-of-addiction: cigarette smoking in relation to price among Americans aged 15-29

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  • Jeffrey E. Harris

    (Department of Economics, Massachusetts Institute of Technology, Cambridge, MA, USA)

  • Sandra W. Chan

    (Department of Economics, Massachusetts Institute of Technology, Cambridge, MA, USA)

Abstract

We studied the relationship between current cigarette smoking and price among 34-145 respondents, aged 15-29 years, to the 1992-1993 Tobacco Use Supplements to the Current Population Survey. The price elasticity of current smoking varied inversely with age: −0.831 (S.E. 0.402) for ages 15-17; −0.524 (S.E. 0.256) for ages 18-20; −0.370 (S.E. 0.188) for ages 21-23; −0.202 (S.E. 0.175) for ages 24-26; and −0.095 (S.E. 0.157) for ages 27-29. In response to higher prices, older youth were more likely to reduce the number of cigarettes smoked per day than to quit entirely. Among 15-17-year-olds, smoking cigarettes 'some days' was more sensitive to price than smoking 'every day'. Cigarette smoking was inversely related to the prices of premium brands, but not discount brands. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Jeffrey E. Harris & Sandra W. Chan, 1999. "The continuum-of-addiction: cigarette smoking in relation to price among Americans aged 15-29," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 81-86.
  • Handle: RePEc:wly:hlthec:v:8:y:1999:i:1:p:81-86
    DOI: 10.1002/(SICI)1099-1050(199902)8:1<81::AID-HEC401>3.0.CO;2-D
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    References listed on IDEAS

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    Cited by:

    1. Sen Anindya & Ariizumi Hideki & Driambe Daciana, 2010. "Do Changes In Cigarette Taxes Impact Youth Smoking? Evidence from Canadian Provinces," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-25, August.
    2. Devereux, M.P. & Lockwood, B. & Redoano, M., 2007. "Horizontal and vertical indirect tax competition: Theory and some evidence from the USA," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 451-479, April.
    3. Nicholas Apergis & Rajeev Goel & James Payne, 2014. "Dynamics of U.S. State Cigarette Consumption: Evidence from Panel Error Correction Modeling," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(1), pages 3-20, March.
    4. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547.
    5. Xueyan Zhao & Mark Harris, 2004. "Modelling Tobacco Consumption with a Zero-Inflated Ordered Probit Model," Econometric Society 2004 Australasian Meetings 363, Econometric Society.
    6. Anindya Sen & Tony Wirjanto, 2010. "Estimating the impacts of cigarette taxes on youth smoking participation, initiation, and persistence: empirical evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1264-1280.
    7. 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.
    8. Ahmad, Sajjad & Billimek, John, 2007. "Limiting youth access to tobacco: Comparing the long-term health impacts of increasing cigarette excise taxes and raising the legal smoking age to 21 in the United States," Health Policy, Elsevier, vol. 80(3), pages 378-391, March.
    9. Jeffrey E. Harris & Beatriz Lopez-Valcarcel, 2004. "Asymmetric Social Interaction in Economics: Cigarette Smoking Among Young People in the United States, 1992-1999," NBER Working Papers 10409, National Bureau of Economic Research, Inc.
    10. Okechukwu, Cassandra & Bacic, Janine & Cheng, Kai-Wen & Catalano, Ralph, 2012. "Smoking among construction workers: The nonlinear influence of the economy, cigarette prices, and antismoking sentiment," Social Science & Medicine, Elsevier, vol. 75(8), pages 1379-1386.
    11. Dawes, John, 2014. "Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data," Journal of Business Research, Elsevier, vol. 67(9), pages 1933-1943.
    12. Lillard, Dean R. & Molloy, Eamon & Sfekas, Andrew, 2013. "Smoking initiation and the iron law of demand," Journal of Health Economics, Elsevier, vol. 32(1), pages 114-127.
    13. Lisa Farrell & Tim R. L. Fry & Mark N. Harris, 2003. "“A Pack A Day For Twenty Years”:Smoking And Cigarette Pack Sizes," Department of Economics - Working Papers Series 887, The University of Melbourne.

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