IDEAS home Printed from https://ideas.repec.org/p/ude/wpaper/0623.html
   My bibliography  Save this paper

Demanda de cigarrillos en Uruguay: análisis nacional con datos mensuales

Author

Listed:
  • Zuleika Ferre

  • Mariana Gerstenblüth

  • Patricia Triunfo

Abstract

The demand for legally sold cigarettes in Uruguay has been estimated using monthly data spanning from January 1997 to June 2022. This estimation involved employing time series analysis alongside a two-stage estimation approach employing instrumental variables. This extended period under consideration allows for a comprehensive control over the influence of various tobacco control policies that were implemented, starting in 2005. The findings reveal an inelastic demand pattern, indicating a price elasticity ranging between -0.6 and -0.8, depending on the estimation method used. Additionally, the income elasticity was found to be less than one, specifically between 0.4 and 0.5. Notably, the implemented tobacco control policies, such as the enforcement of 100% smoke-free spaces (since March 2006), the adoption of single presentation (since February 2009), the complete ban on advertising (since November 2014), and the implementation of flat or neutral packaging (since January 2020), exhibited significant negative effects. While these policies form part of a comprehensive campaign, it's challenging to isolate their individual impacts or assess their combined synergy. Nevertheless, the results underscore their collective relevance in curbing cigarette consumption. In line with commitments outlined in the World Health Organization's Framework Convention on Tobacco Control, simulations involving successive tax increases from 2024 to 2028 were conducted. The analysis suggests that a 56% real-term increase in the specific tax (IMESI) would potentially lead to a reduction in the smoking population, estimated between 14% and 21%, equating to approximately 52,000 to 74,000 fewer smokers. Moreover, this increase is projected to result in a decline in the consumption of legal cigarettes by a range of 30% to 44%. Interestingly, unlike the observed 8% decline in real collection between 2022 and 2023, it is anticipated that these tax adjustments could potentially trigger an increase in collection ranging between 3% and 7%.

Suggested Citation

  • Zuleika Ferre & Mariana Gerstenblüth & Patricia Triunfo, 2023. "Demanda de cigarrillos en Uruguay: análisis nacional con datos mensuales," Documentos de Trabajo (working papers) 0623, Department of Economics - dECON.
  • Handle: RePEc:ude:wpaper:0623
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/20.500.12008/42382
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis

    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:ude:wpaper:0623. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Andrea Doneschi or the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/derauuy.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.