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Price Elasticity Estimates for Tobacco and Other Addictive Goods in India

  • Rijo John

    ()

The tax base of tobacco in India is found to be heavily depended on about fteen per cent of the tobacco users who represent cigarettes smokers. Non-cigarette tobacco products used by the majority of tobacco users are largely out of the tax net. Analysis of the price elasticity of various tobacco products would bring out the potential of tax as an instrument to control tobacco use of any kind. In this context, this paper examines how the demand for a variety of tobacco products and addictive goods such as pan and alcohol respond to changes in prices. [IGIDR WP 2005-003].

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Paper provided by eSocialSciences in its series Working Papers with number id:117.

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Date of creation: Aug 2005
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Handle: RePEc:ess:wpaper:id:117
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  1. Susan H. Busch & Mireia Jofre-Bonet & Tracy A. Falba & Jody L. Sindelar, 2004. "Tobacco Spending and its Crowd-Out of Other Goods," NBER Working Papers 10974, National Bureau of Economic Research, Inc.
  2. Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627 Elsevier.
  3. Rijo John, 2004. "An analysis of household's tobacco consumption decisions: Evidence from India," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2004-002, Indira Gandhi Institute of Development Research, Mumbai, India.
  4. K.W. Clements & W. Yang & S.W. Zheng, 1997. "Is utility additive? The case of alcohol," Economics Discussion / Working Papers 97-02, The University of Western Australia, Department of Economics.
  5. John, Rijo M., 2005. "Tobacco consumption patterns and its health implications in India," Health Policy, Elsevier, vol. 71(2), pages 213-222, February.
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