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The Price of Smoking

Author

Listed:
  • Frank A. Sloan

    (Duke University)

  • Jan Ostermann

    (Duke University)

  • Christopher Conover

    (Duke University)

  • Donald H. Taylor, Jr.

    (Duke University)

  • Gabriel Picone

    (University of South Florida)

Abstract

What does a pack of cigarettes cost a smoker, the smoker's family, and society? This longitudinal study on the private and social costs of smoking calculates that the cost of smoking to a 24-year-old woman smoker is $86,000 over a lifetime; for a 24-year-old male smoker the cost is $183,000. The total social cost of smoking over a lifetime—including both private costs to the smoker and costs imposed on others (including second-hand smoke and costs of Medicare, Medicaid, and Social Security)—comes to $106,000 for a woman and $220,000 for a man. The cost per pack over a lifetime of smoking: almost $40.00. The first study to quantify the cost of smoking in this way, or in such depth, this accessible book not only adds a weapon to the arsenal of antismoking messages but also provides a framework for assessment that can be applied to other health behaviors. The findings on the effects of smoking on Medicare and Medicaid will be surprising and perhaps controversial, for the authors estimate the costs to be much lower than the damage awards being paid to 46 states as a result of the 1998 Master Settlement Agreement.

Suggested Citation

  • Frank A. Sloan & Jan Ostermann & Christopher Conover & Donald H. Taylor, Jr. & Gabriel Picone, 2006. "The Price of Smoking," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262693453, April.
  • Handle: RePEc:mtp:titles:0262693453
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    Citations

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    Cited by:

    1. W. Viscusi, 2008. "How to value a life," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 32(4), pages 311-323, October.
    2. Gregory J. Colman & Dahlia K. Remler, 2008. "Vertical equity consequences of very high cigarette tax increases: If the poor are the ones smoking, how could cigarette tax increases be progressive?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 27(2), pages 376-400.
    3. Chen, Yu-Fu & Petrie, Dennis, 2012. "When to Quit Under Uncertainty? A real options approach to smoking cessation," SIRE Discussion Papers 2012-79, Scottish Institute for Research in Economics (SIRE).
    4. Samir Soneji & Gary King, 2011. "The future of death in America," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 25(1), pages 1-38.
    5. Khwaja, Ahmed & Silverman, Dan & Sloan, Frank, 2007. "Time preference, time discounting, and smoking decisions," Journal of Health Economics, Elsevier, vol. 26(5), pages 927-949, September.
    6. STANCIOLE Anderson, 2007. "Health Insurance and Life Style Choices: Identifying the Ex Ante Moral Hazard," IRISS Working Paper Series 2007-10, IRISS at CEPS/INSTEAD.
    7. Ayyagari Padmaja & Sindelar Jody L, 2010. "The Impact of Job Stress on Smoking and Quitting: Evidence from the HRS," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-32, March.
    8. Frank Sloan & Alyssa Platt, 2011. "Information, risk perceptions, and smoking choices of youth," Journal of Risk and Uncertainty, Springer, vol. 42(2), pages 161-193, April.
    9. David L. Weimer & Aidan R. Vining & Randall K. Thomas, 2009. "Cost–benefit analysis involving addictive goods: contingent valuation to estimate willingness‐to‐pay for smoking cessation," Health Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 181-202, February.
    10. Ahmed Khwaja & Frank Sloan & Sukyung Chung, 2007. "The relationship between individual expectations and behaviors: Mortality expectations and smoking decisions," Journal of Risk and Uncertainty, Springer, vol. 35(2), pages 179-201, October.
    11. Natsuko Iwasaki & Victor Tremblay, 2009. "The effect of marketing regulations on efficiency: LeChatelier versus coordination effects," Journal of Productivity Analysis, Springer, vol. 32(1), pages 41-54, August.
    12. Frijters, Paul & Ulker, Aydogan, 2008. "Robustness in health research: Do differences in health measures, techniques, and time frame matter?," Journal of Health Economics, Elsevier, vol. 27(6), pages 1626-1644, December.
    13. Darden, Michael E. & Hotchkiss, Julie L. & Melinda Pitts, M., 2021. "The dynamics of the smoking wage penalty," Journal of Health Economics, Elsevier, vol. 79(C).
    14. DeCicca, Philip & McLeod, Logan, 2008. "Cigarette taxes and older adult smoking: Evidence from recent large tax increases," Journal of Health Economics, Elsevier, vol. 27(4), pages 918-929, July.
    15. Polansky, Jonathan R. & Glantz, Stanton A., 2012. "California film subsidies and on-screen smoking: Resolving the policy conflict," University of California at San Francisco, Center for Tobacco Control Research and Education qt0t9099dr, Center for Tobacco Control Research and Education, UC San Francisco.
    16. Viscusi, W. Kip & Hersch, Joni, 2008. "The mortality cost to smokers," Journal of Health Economics, Elsevier, vol. 27(4), pages 943-958, July.
    17. Frijters, Paul & Barón, Juan D., 2009. "Do the Obese Really Die Younger or Do Health Expenditures Buy Them Extra Years?," IZA Discussion Papers 4149, Institute of Labor Economics (IZA).
    18. Michael Grossman, 2005. "Individual Behaviours and Substance Use: The Role of Price," Advances in Health Economics and Health Services Research, in: Substance Use: Individual Behaviour, Social Interactions, Markets and Politics, pages 15-39, Emerald Group Publishing Limited.
    19. Martina Menon & Federico Perali & Luca Piccoli, 2012. "The Passive Drinking Effect: A Collective Demand Application," Working Papers 05/2012, University of Verona, Department of Economics.
    20. Ahmed Khwaja & Frank Sloan & Sukyung Chung, 2006. "The Effects of Spousal Health on the Decision to Smoke: Evidence on Consumption Externalities, Altruism and Learning Within the Household," Journal of Risk and Uncertainty, Springer, vol. 32(1), pages 17-35, January.
    21. Rosemary Avery & Donald Kenkel & Dean R. Lillard & Alan Mathios, 2007. "Private Profits and Public Health: Does Advertising of Smoking Cessation Products Encourage Smokers to Quit?," Journal of Political Economy, University of Chicago Press, vol. 115(3), pages 447-481.

    More about this item

    Keywords

    smoking; social costs;

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • Z1 - Other Special Topics - - Cultural Economics

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