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Retailer Compliance as a Predictor of Youth Smoking Participation and Consumption

Author

Listed:
  • Diener, Alan
  • Ahmed, Rashid
  • Snider, Judy
  • Kaiserman, Murray

Abstract

Ninety per cent of smokers report having their first whole cigarette before the age of 19. Thus, it is important to have policies such as youth access laws which may prevent youth from becoming future smokers. In Canada, the Tobacco Act prohibits retailers from furnishing tobacco products to individuals under the age of 18. For such laws to be effective, however, it is important that retailers comply with them. The objective of this study was to examine the effect of retailer compliance on youth smoking behaviour. Data on individual smoking behaviour in conjunction with provincial retailer compliance rates and cigarette prices for the years 1999-2005 were employed to examine the effects of retailer compliance on youth smoking participation and consumption. Both price and retailer compliance were significant predictors of smoking participation. Price elasticity of demand for the overall sample was estimated to be -0.54. Our results which are consistent with previous research indicate that retailer compliance must be considered when examining the effects of youth access laws. This research confirmed that youth access laws can be an important component of a successful public policy approach to youth smoking prevention.

Suggested Citation

  • Diener, Alan & Ahmed, Rashid & Snider, Judy & Kaiserman, Murray, 2007. "Retailer Compliance as a Predictor of Youth Smoking Participation and Consumption," MPRA Paper 3078, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:3078
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    File URL: https://mpra.ub.uni-muenchen.de/3078/1/MPRA_paper_3078.pdf
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    References listed on IDEAS

    as
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    2. 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.
    3. 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.
    4. Andrew M. Jones, 2012. "health econometrics," The New Palgrave Dictionary of Economics, Palgrave Macmillan.
    5. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    6. Hana Ross & Frank J. Chaloupka, 2004. "The Effect of Public Policies and Prices on Youth Smoking," Southern Economic Journal, Southern Economic Association, vol. 70(4), pages 796-815, April.
    7. Jonathan Gruber & Jonathan Zinman, 2000. "Youth Smoking in the U.S.: Evidence and Implications," NBER Working Papers 7780, National Bureau of Economic Research, Inc.
    8. Hana Ross & Frank J. Chaloupka, 2003. "The effect of cigarette prices on youth smoking," Health Economics, John Wiley & Sons, Ltd., vol. 12(3), pages 217-230.
    9. Wasserman, Jeffrey & Manning, Willard G. & Newhouse, Joseph P. & Winkler, John D., 1991. "The effects of excise taxes and regulations on cigarette smoking," Journal of Health Economics, Elsevier, vol. 10(1), pages 43-64, May.
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    More about this item

    Keywords

    youth smoking; two-part model; retailer compliance;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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