IDEAS home Printed from https://ideas.repec.org/p/bsu/wpaper/201207.html
   My bibliography  Save this paper

The Distributional Effects of Tobacco Control Policies On Adult Smoking Behavior

Author

Listed:
  • Erik Nesson

    (Department of Economics, Emory University)

Abstract

This paper uses quantile regression to estimate whether adult 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 Nutritional Examination Surveys. I find that higher cigarette excise taxes reduce smoking prevalence, and both higher cigarette prices and excise taxes reduce the number of cigarettes smoked per day among smokers. Using quantile regression, I find that the reductions in cigarette smoking are concentrated among the heaviest smokers. However, using serum cotinine levels, I find little evidence that cigarette excise taxes or prices affect smokers intake of nicotine at any smoking level. I directly test whether the amount of nicotine smokers ingest from each cigarette is affected by tobacco control policies, and in fact I find evidence that the heaviest smokers consume more nicotine from each cigarette in response to higher cigarette prices. Additionally, I find evidence that smoke-free air laws in private workplaces and restaurants or bars are associated with reduced smoking prevalence, but not reductions in cigarette smoking or serum cotinine levels among smokers.

Suggested Citation

  • Erik Nesson, 2012. "The Distributional Effects of Tobacco Control Policies On Adult Smoking Behavior," Working Papers 201207, Ball State University, Department of Economics, revised Jun 2012.
  • Handle: RePEc:bsu:wpaper:201207
    as

    Download full text from publisher

    File URL: http://econfac.bsu.edu/research/workingpapers/bsuecwp201207Nesson.pdf
    File Function: First version, 2012
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Audrey Laporte & Alfia Karimova & Brian Ferguson, 2010. "Quantile regression analysis of the rational addiction model: investigating heterogeneity in forward‐looking behavior," Health Economics, John Wiley & Sons, Ltd., vol. 19(9), pages 1063-1074, September.
    2. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    3. Emery, Sherry & White, Martha M. & Pierce, John P., 2001. "Does cigarette price influence adolescent experimentation?," Journal of Health Economics, Elsevier, vol. 20(2), pages 261-270, March.
    4. J?r?me Adda & Francesca Cornaglia, 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply," American Economic Review, American Economic Association, vol. 103(7), pages 3102-3114, December.
    5. Baltagi, Badi H & Levin, Dan, 1986. "Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 148-155, February.
    6. Harris, Jeffrey E, 1980. "Taxing Tar and Nicotine," American Economic Review, American Economic Association, vol. 70(3), pages 300-311, June.
    7. Anger, Silke & Kvasnicka, Michael & Siedler, Thomas, 2011. "One last puff? Public smoking bans and smoking behavior," Journal of Health Economics, Elsevier, vol. 30(3), pages 591-601, May.
    8. Christopher Carpenter & Sabina Postolek & Casey Warman, 2011. "Public-Place Smoking Laws and Exposure to Environmental Tobacco Smoke (ETS)," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 35-61, August.
    9. Chiou Lesley & Muehlegger Erich, 2008. "Crossing the Line: Direct Estimation of Cross-Border Cigarette Sales and the Effect on Tax Revenue," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(1), pages 1-41, December.
    10. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, vol. 96(4), pages 1013-1028, September.
    11. Jérôme Adda & Francesca Cornaglia, 2010. "The Effect of Bans and Taxes on Passive Smoking," American Economic Journal: Applied Economics, American Economic Association, vol. 2(1), pages 1-32, January.
    12. William N. Evans & Matthew C. Farrelly, 1998. "The Compensating Behavior of Smokers: Taxes, Tar, and Nicotine," RAND Journal of Economics, The RAND Corporation, vol. 29(3), pages 578-595, Autumn.
    13. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    14. 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.
    15. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2004. "An economic analysis of adult obesity: results from the Behavioral Risk Factor Surveillance System," Journal of Health Economics, Elsevier, vol. 23(3), pages 565-587, May.
    16. Chou, Shin-Yi & Grossman, Michael & Saffer, Henry, 2006. "Reply to Jonathan Gruber and Michael Frakes," Journal of Health Economics, Elsevier, vol. 25(2), pages 389-393, March.
    17. DeCicca, Philip & Kenkel, Donald & Liu, Feng, 2013. "Excise tax avoidance: The case of state cigarette taxes," Journal of Health Economics, Elsevier, vol. 32(6), pages 1130-1141.
    18. Frank J. Chaloupka & Henry Saffer, 1992. "Clean Indoor Air Laws And The Demand For Cigarettes," Contemporary Economic Policy, Western Economic Association International, vol. 10(2), pages 72-83, April.
    19. Jérôme Adda & Francesca Cornaglia, 2010. "Passive smoking: the effect of bans and taxes," CentrePiece - The Magazine for Economic Performance 315, Centre for Economic Performance, LSE.
    20. Robert W. Paterson & Kevin J. Boyle & Christopher F. Parmeter & James E. Neumann & Paul De Civita, 2008. "Heterogeneity in preferences for smoking cessation," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1363-1377, December.
    21. M.C. Farrelly & C.T. Nimsch & A. Hyland & M. Cummings, 2004. "The effects of higher cigarette prices on tar and nicotine consumption in a cohort of adult smokers," Health Economics, John Wiley & Sons, Ltd., vol. 13(1), pages 49-58, January.
    22. Williams, C.L. & Eng, A. & Botvin, G.J. & Hill, P. & Wynder, E.L., 1979. "Validation of students' self-reported cigarette smoking status with plasma cotinine levels," American Journal of Public Health, American Public Health Association, vol. 69(12), pages 1272-1274.
    23. 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.
    24. Hana Ross & Frank J. Chaloupka & Melanie Wakefield, 2006. "Youth Smoking Uptake Progress: Price and Public Policy Effects," Eastern Economic Journal, Eastern Economic Association, vol. 32(2), pages 355-367, Spring.
    25. Rajeev Goel & Rati Ram, 2004. "Quantile-regression estimates of cigarette demand elasticities for the United States," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(3), pages 413-421, September.
    26. Russell Davidson & James MacKinnon, 2000. "Bootstrap tests: how many bootstraps?," Econometric Reviews, Taylor & Francis Journals, vol. 19(1), pages 55-68.
    27. Gruber, Jonathan & Frakes, Michael, 2006. "Does falling smoking lead to rising obesity?," Journal of Health Economics, Elsevier, vol. 25(2), pages 183-197, March.
    28. Lesley Chiou & Erich Muehlegger, 2014. "Consumer Response to Cigarette Excise Tax Changes," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 621-650, September.
    29. John A. Tauras, 2006. "Smoke-Free Air Laws, Cigarette Prices, and Adult Cigarette Demand," Economic Inquiry, Western Economic Association International, vol. 44(2), pages 333-342, April.
    30. Brett Katzman & Sara Markowitz & Kerry Anne McGeary, 2007. "An empirical investigation of the social market for cigarettes," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1025-1039, October.
    31. Christopher S. Carpenter, 2009. "The Effects of Local Workplace Smoking Laws on Smoking Restrictions and Exposure to Smoke at Work," Journal of Human Resources, University of Wisconsin Press, vol. 44(4).
    32. Badi H. Baltagi & Rajeev K. Goel, 1987. "Quasi-Experimental Price Elasticities of Cigarette Demand and the Bootlegging Effect," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 69(4), pages 750-754.
    33. Matthew C. Farrelly & William N. Evans & Edward Montgomery, 1999. "Do Workplace Smoking Bans Reduce Smoking?," American Economic Review, American Economic Association, vol. 89(4), pages 728-747, September.
    34. John A. Tauras, 2005. "Can public policy deter smoking escalation among young adults?," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(4), pages 771-784.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Nesson, 2017. "Heterogeneity in Smokers' Responses to Tobacco Control Policies," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 206-225, February.
    2. Erik Nesson, 2012. "Do Tobacco Control Policies Reduce Secondhand Smoke Exposure in the Workplace?," Working Papers 201206, Ball State University, Department of Economics, revised Jun 2012.
    3. Rozema, Kyle & Ziebarth, Nicolas R., 2015. "Behavioral Responses to Taxation: Cigarette Taxes and Food Stamp Take-Up," IZA Discussion Papers 8907, Institute of Labor Economics (IZA).
    4. Michael Kvasnicka & Thomas Siedler & Nicolas R. Ziebarth, 2018. "The health effects of smoking bans: Evidence from German hospitalization data," Health Economics, John Wiley & Sons, Ltd., vol. 27(11), pages 1738-1753, November.
    5. Odermatt, Reto & Stutzer, Alois, 2015. "Smoking bans, cigarette prices and life satisfaction," Journal of Health Economics, Elsevier, vol. 44(C), pages 176-194.
    6. Vinish Shrestha, 2018. "Do young adults substitute cigarettes for alcohol? Learning from the master settlement agreement," Review of Economics of the Household, Springer, vol. 16(2), pages 297-321, June.
    7. Leah K. Lakdawala & David Simon, 2016. "The Intergenerational Consequences of Tobacco Policy," Working papers 2016-27, University of Connecticut, Department of Economics.
    8. Fletcher, Jason M. & Frisvold, David E. & Tefft, Nathan, 2010. "The effects of soft drink taxes on child and adolescent consumption and weight outcomes," Journal of Public Economics, Elsevier, vol. 94(11-12), pages 967-974, December.
    9. Andrew M. Jones & Audrey Laporte & Nigel Rice & Eugenio Zucchelli, 2015. "Do Public Smoking Bans have an Impact on Active Smoking? Evidence from the UK," Health Economics, John Wiley & Sons, Ltd., vol. 24(2), pages 175-192, February.
    10. Christopher Carpenter & Sabina Postolek & Casey Warman, 2011. "Public-Place Smoking Laws and Exposure to Environmental Tobacco Smoke (ETS)," American Economic Journal: Economic Policy, American Economic Association, vol. 3(3), pages 35-61, August.
    11. Courtemanche, Charles, 2009. "Rising cigarette prices and rising obesity: Coincidence or unintended consequence?," Journal of Health Economics, Elsevier, vol. 28(4), pages 781-798, July.
    12. Celidoni, Martina & Pieroni, Luca & Salmasi, Luca, 2014. "Side-effects of anti-smoking policies on health behaviors. Evidence from the US," MPRA Paper 58312, University Library of Munich, Germany.
    13. Anger, Silke & Kvasnicka, Michael & Siedler, Thomas, 2011. "One Last Puff? Public Smoking Bans and Smoking Behavior," EconStor Open Access Articles, ZBW - Leibniz Information Centre for Economics, pages 591-601.
    14. Esteban Petruzzello, 2019. "Measuring the Effect of Policy on the Demand for Menthol Cigarettes: Evidence from Household-Level Purchase Data," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 422-445, June.
    15. repec:zbw:rwirep:0180 is not listed on IDEAS
    16. DeCicca, Philip & Kenkel, Donald & Liu, Feng, 2013. "Excise tax avoidance: The case of state cigarette taxes," Journal of Health Economics, Elsevier, vol. 32(6), pages 1130-1141.
    17. Faiz Ur Rehman & Muhammad Nasir, 2018. "In the Same Boat, but not Equals: The Heterogeneous Effects of Indirect Taxation on Child Health in Punjab-Pakistan," PIDE-Working Papers 2018:158, Pakistan Institute of Development Economics.
    18. Buonanno, Paolo & Ranzani, Marco, 2013. "Thank you for not smoking: Evidence from the Italian smoking ban," Health Policy, Elsevier, vol. 109(2), pages 192-199.
    19. Hong Liu & John A. Rizzo & Qi Sun & Fang Wu, 2015. "How Do Smokers Respond to Cigarette Taxes? Evidence from China's Cigarette Industry," Health Economics, John Wiley & Sons, Ltd., vol. 24(10), pages 1314-1330, October.
    20. Erik Nesson, 2017. "The Impact of Tobacco Control Policies on Adolescent Smoking: Comparing Self-Reports and Biomarkers," American Journal of Health Economics, University of Chicago Press, vol. 3(4), pages 507-527, Fall.
    21. Kai‐Wen Cheng & Feng Liu & MariaElena Gonzalez & Stanton Glantz, 2017. "The Effects of Workplace Clean Indoor Air Law Coverage on Workers' Smoking‐Related Outcomes," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 226-242, February.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bsu:wpaper:201207. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tung Liu). General contact details of provider: http://edirc.repec.org/data/debsuus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.