Effects of Price and Access Laws on Teenage Smoking Initiation: A National Longitudinal Analysis
Over the past three decades a significant amount of economic research has established that increasing cigarette prices reduces cigarette smoking among both adults and adolescents. The consensus estimates for the price elasticity of adult demand from these studies fall in a narrow range of 0.3 to 0.5, suggesting that a 10% increase in the price of cigarettes would decrease adult consumption by 3%-5%. A smaller literature on youth responsiveness to cigarette prices has also emerged. A majority of these studies concluded that youth are up to three times as responsive to price as are adults. Only four econometric studies have attempted to model youth and young adult smoking initiation decisions. All four studies concluded that cigarette prices (or cigarette excise taxes) are insignificant determinants of smoking initiation. This study addresses the limitations of the previous studies on smoking initiation and examines the impact of cigarette prices and youth access laws on adolescent smoking initiation. Nationally representative longitudinal surveys of 8th and 10th graders as part of the Monitoring the Future project are employed in the analysis. State-specific prices and several measures of youth access restrictions are added to the survey data. Discrete-time hazard methods are used to model the probability of initiation. Contradicting the results of the four previous studies on smoking initiation, the results of this study clearly indicate that increases in the price of cigarettes would significantly reduce the number of adolescents who start smoking. The results are mixed with respect to youth access restrictions.
|Date of creation:||Jun 2001|
|Contact details of provider:|| Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.|
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Frank J. Chaloupka & Michael Grossman, 1996. "Price, Tobacco Control Policies and Youth Smoking," NBER Working Papers 5740, National Bureau of Economic Research, Inc.
- Lewit, Eugene M & Coate, Douglas & Grossman, Michael, 1981.
"The Effects of Government Regulation on Teenage Smoking,"
Journal of Law and Economics,
University of Chicago Press, vol. 24(3), pages 545-569, December.
- Eugene M. Lewit & Douglas Coate & Michael Grossman, 1981. "The Effects of Government Regulation on Teenage Smoking," NBER Working Papers 0655, National Bureau of Economic Research, Inc.
- Jonathan Gruber, 2000. "Youth Smoking in the U.S.: Prices and Policies," NBER Working Papers 7506, National Bureau of Economic Research, Inc.
- DeCicca, Philip & Kenkel, Donald & Mathios, Alan, 2000.
"Putting Out The Fires: Will Higher Taxes Reduce Youth Smoking?,"
00-3, University of Aarhus, Aarhus School of Business, Department of Economics.
- Decicca, P. & Kenkel, D. & Mathios, A., 2000. "Putting Out the Fires: Will Higher Taxes Reduce Youth Smoking," Papers 00-3, Aarhus School of Business - Department of Economics.
- Douglas, Stratford, 1998. "The Duration of the Smoking Habit," Economic Inquiry, Western Economic Association International, vol. 36(1), pages 49-64, January.
- Douglas, Stratford & Hariharan, Govind, 1994. "The hazard of starting smoking: Estimates from a split population duration model," Journal of Health Economics, Elsevier, vol. 13(2), pages 213-230, July.
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:8331. 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: ()
If references are entirely missing, you can add them using this form.