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How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey

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  • Ángel López Nicolás

Abstract

This paper analyses the effect of tobacco prices on the propensity to start and quit smoking using a pool of the 1993, 1995 and 1997 editions of the Spanish National Health Surveys. The estimates for several parametric models of the hazard rate for starting and quitting suggest that i) The public health measures applied as of 1992 have had a significative effect on both reducing the hazard of starting and increasing the hazard of quitting, ii) Prices have a very weak effect on the hazard of starting in the male population and no significant effect in the female population, iii) The price floor of cigarrettes, proxied by the average price of a pack of black cigarrettes, has a significant effect on the quitting hazard which is robust across specifications and applies to both men and women. The implied price elasticity of the time up to quitting is situated around -1.4.

Suggested Citation

  • Ángel López Nicolás, 2001. "How important are tobacco prices in the propensity to start and quit smoking? An analysis of smoking histories from the Spanish National Health Survey," Working Papers, Research Center on Health and Economics 548, Department of Economics and Business, Universitat Pompeu Fabra.
  • Handle: RePEc:upf:upfses:548
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    References listed on IDEAS

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    8. Namkee Ahn & Josée Alberto Molina, "undated". "Smoking in Spain: Analysis of Initiation and Cessation," Working Papers 2001-02, FEDEA.
    9. Martin Forster & Andrew M. Jones, "undated". "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York.
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    Cited by:

    1. van Ours, Jan C. & Williams, Jenny, 2007. "Cannabis prices and dynamics of cannabis use," Journal of Health Economics, Elsevier, vol. 26(3), pages 578-596, May.
    2. Silja Göhlmann, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 0027, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    3. DeCicca, Philip & Kenkel, Don & Mathios, Alan, 2008. "Cigarette taxes and the transition from youth to adult smoking: Smoking initiation, cessation, and participation," Journal of Health Economics, Elsevier, vol. 27(4), pages 904-917, July.
    4. Etilé, Fabrice & Jones, Andrew M., 2011. "Schooling and smoking among the baby boomers - An evaluation of the impact of educational expansion in France," Journal of Health Economics, Elsevier, vol. 30(4), pages 811-831, July.
    5. Christian Bünnings, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 0459, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    6. 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.
    7. Bünnings, Christian, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 459, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    8. Jan C. van Ours, 2006. "Dynamics in the use of drugs," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1283-1294.
    9. Don Kenkel, 2012. "Health Behaviours Among Young People," Chapters,in: The Elgar Companion to Health Economics, Second Edition, chapter 6 Edward Elgar Publishing.
    10. David Madden, 2007. "Tobacco taxes and starting and quitting smoking: does the effect differ by education?," Applied Economics, Taylor & Francis Journals, vol. 39(5), pages 613-627.
    11. van Baal, Pieter H.M. & Brouwer, Werner B.F. & Hoogenveen, Rudolf T. & Feenstra, Talitha L., 2007. "Increasing tobacco taxes: A cheap tool to increase public health," Health Policy, Elsevier, vol. 82(2), pages 142-152, July.
    12. Göhlmann, Silja, 2007. "The Determinants of Smoking Initiation - Empirical Evidence for Germany," Ruhr Economic Papers 27, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    13. Göhlmann, Silja & Schmidt, Christoph M., 2008. "Smoking in Germany: Stylized Facts, Behavioral Models, and Health Policy," Ruhr Economic Papers 64, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    14. Christopoulou, Rebekka & Lillard, Dean R., 2015. "Is smoking behavior culturally determined? Evidence from British immigrants," Journal of Economic Behavior & Organization, Elsevier, vol. 110(C), pages 78-90.
    15. Nonnemaker, James M. & Farrelly, Matthew C., 2011. "Smoking initiation among youth: The role of cigarette excise taxes and prices by race/ethnicity and gender," Journal of Health Economics, Elsevier, vol. 30(3), pages 560-567, May.
    16. repec:zbw:rwirep:0064 is not listed on IDEAS
    17. repec:zbw:rwirep:0459 is not listed on IDEAS
    18. Silja Göhlmann & Christoph M. Schmidt, 2008. "Smoking in Germany: Stylized Facts, Behavioral Models, and Health Policy," Ruhr Economic Papers 0064, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    19. Deliana Kostova & Frank Chaloupka & Ce Shang, 2015. "A duration analysis of the role of cigarette prices on smoking initiation and cessation in developing countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 16(3), pages 279-288, April.
    20. repec:zbw:rwirep:0027 is not listed on IDEAS

    More about this item

    Keywords

    Smoking; taxes; health; care;

    JEL classification:

    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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