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Smoking and the Economics of Government Intervention

In: The Economics of Health and Medical Care

Author

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  • Anthony B. Atkinson

    (University of Essex)

Abstract

If the existence of a relationship between smoking and disease is accepted, the question arises of the desirability of government intervention to reduce tobacco consumption. This paper is concerned with the economic aspects of this question and, in particular, with the development of an underlying theoretical framework. The model of individual smoking behavior is based on utility maximization, but also allows for imperfect knowledge and habit formation. The welfare economic implications are then explored, and related to various estimates of the ‘cost’ of smoking. The paper also considers the choice between taxation and health education as means of reducing smoking, and brings out the point that more information about the health risks of smoking is not necessarily socially desirable.

Suggested Citation

  • Anthony B. Atkinson, 1974. "Smoking and the Economics of Government Intervention," International Economic Association Series, in: Mark Perlman (ed.), The Economics of Health and Medical Care, chapter 21, pages 428-441, Palgrave Macmillan.
    • Handle: RePEc:pal:intecp:978-1-349-63660-0_21
    DOI: 10.1007/978-1-349-63660-0_21
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    Cited by:

    1. Jones, Andrew M., 1999. "Adjustment costs, withdrawal effects, and cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 125-137, January.
    2. David Aristei & Luca Pieroni, 2010. "Habits, Complementarities and Heterogeneity in Alcohol and Tobacco Demand: A Multivariate Dynamic Model," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(4), pages 428-457, August.

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