Interstate Cigarette Smuggling

1976 ◽  
Vol 4 (2) ◽  
pp. 225-238 ◽  
Author(s):  
Paul B. Manchester

In recent years sizable differences between state cigarette taxes have led to the rise of interstate smuggling. This study presents an interstate demand analysis, using quarterly state sales data, to examine this and other aspects of the cigarette market. For the cases examined, nonresident purchases for 1970–1971 are estimated to have accounted for approximately 15% of the sales in the low tax states. In addition to price elasticities, income elasticities, “health scare,” and seasonal effects are estimated. The determinants of retail state cigarette prices are also explored in the Appendix.

2018 ◽  
Vol 28 (3) ◽  
pp. 346-349 ◽  
Author(s):  
Doris G Gammon ◽  
Todd Rogers ◽  
Ellen M Coats ◽  
James M Nonnemaker ◽  
Lisa Henriksen

ObjectiveAt least four varieties of little filtered cigars (LFCs) violate the US prohibition on flavoured cigarettes other than menthol. This study characterises the sales of prohibited products and other LFCs by flavour category and pack size, as well as the price of LFCs relative to cigarettes.MethodsUsing retail sales data for 2016, we computed the sales volume in dollars and equivalent units and the percentage of total sales by flavour and pack size for the USA by region and state. Paired t-tests compared the prices for LFCs and cigarettes sold in same-sized packs and cartons.ResultsLFC sales totalled 24 033 equivalent units per 100 000 persons in 2016. Flavoured LFC varieties accounted for almost half (47.5%) of the total sales. LFCs were sold in 12 different pack sizes, but 79.7% of sales were packs of 20. The price of 20-packs averaged $2.41 (SD=$1.49), which was significantly less than cigarettes (M=$5.90, SD=$0.85). Regional differences suggest a greater proportion of menthol/mint LFCs and lower prices in the South than in other regions.ConclusionClassifying all LFCs as cigarettes would require that they be offered in a minimum package of 20, eliminate flavoured varieties other than menthol and increase prices through applicable state and local cigarette taxes.


2012 ◽  
Vol 102 (4) ◽  
pp. 1751-1763 ◽  
Author(s):  
Jason Abrevaya ◽  
Laura Puzzello

This paper re-examines Adda and Cornaglia's (2006) evidence on the compensatory behavior of smokers who, in face of higher taxes, are found to reduce their consumption of cigarettes while maintaining their cotinine––a biomarker for nicotine––levels constant. This comment examines the robustness of the empirical findings in Adda and Cornaglia (2006) using: appropriate clustered standard errors, a larger sample from the same years and survey as the data in Adda and Cornaglia (2006), cigarette-prices instead of and in addition to cigarette-taxes, and sampling weights. The empirical findings of Adda and Cornaglia (2006) are not robust. Further, little systematic evidence of compensatory behavior is found among subsamples of smokers


1996 ◽  
Vol 25 (1) ◽  
pp. 28-37 ◽  
Author(s):  
Banaga D. Abdelmagid ◽  
Michael K. Wohlgenant ◽  
Charles D. Safley

Demand for selected nursery plants sold in North Carolina (i.e., begonia, dianthus, geranium, impatiens, marigold, petunia, and vinca) was found to be affected more by prices than by income, demographic, and other variables. By using cross-sectional data, a modified AIDS model, incorporating demographic variables and quadratic income response, was estimated. Inverse Mills's ratios were also included in the model to correct for selectivity bias, resulting from zero purchases. Significant own-price elasticities ranged from − 0.71 to − 1.65, and income elasticities ranged from − 0.78 to 0.41.


2021 ◽  
Author(s):  
Chad D. Cotti ◽  
Charles Courtemanche ◽  
Catherine Maclean ◽  
Erik Nesson ◽  
Michael Pesko ◽  
...  

2020 ◽  
Author(s):  
Chad Cotti ◽  
Charles Courtemanche ◽  
Johanna Catherine Maclean ◽  
Erik Nesson ◽  
Michael Pesko ◽  
...  

1979 ◽  
Vol 9 (2) ◽  
pp. 141-148 ◽  
Author(s):  
Joseph Buongiorno

Income and price elasticities of demand for coniferous and nonconiferous sawn wood, plywood, particle board, and fibreboard were estimated using yearly data from 43 countries, over the period 1963–1973. A static and a dynamic model were estimated by analysis of covariance and generalized least squares. The simpler technique, analysis of covariance, gave satisfactory estimates for both models. Demand for all products was found to be price inelastic, with long-term elasticities ranging from −0.1 for particle board to −0.2 for coniferous sawn wood. Price elasticities for plywood and nonconiferous sawn wood were not significantly different from zero but this result might only reflect price-data inadequacies. Long-term income elasticities were +0.7 and +0.5 for coniferous and nonconiferous sawn wood, respectively. Demand for all wood-based panels was income elastic, with long-term elasticities of +1.0 for plywood and fibreboard, and of +2.3 for particle board. The results indicated that in discussing elasticities of demand for forest products, the length of the time period should be specified. Full adjustment of demand to changing prices and income was shown to always take more than 1 year. Demand for fibreboard appeared to adjust most rapidly to changes in economic conditions; the demand for nonconiferous sawnwood adjusted most slowly.


2005 ◽  
Vol 12 (12) ◽  
pp. 769-773 ◽  
Author(s):  
R.Andrew Luccasen ◽  
R. Morris Coats ◽  
G. Karahan

Author(s):  
Rania Tegou

Companies have to deter many remarkable problems on a daily basis. The existence of excess inventories and stock out events as well the usage of emergency deliveries are three indicative prominent subjects for discussion. Firms try to comprehend the consumer's desires in order to enhance costumer experience. In the current chapter, sales data of one tangible product from a well-known Greek retailing company are used. These data are analyzed in order to forecast the behavior of the demand. The author adapts an alternative approach for managing inventory during cycles with different levels of demand in order to develop a system that minimizes both excessive inventories and stock out events. Additional experiments take place regarding the parameterization of emergency deliveries in order to configure whether their usage is beneficial. Both an error analysis model and a simulation model are developed so as to determine the results of the aforementioned action.


2018 ◽  
Vol 33 (4) ◽  
pp. 558-565
Author(s):  
Laurel Curry ◽  
Carol L. Schmitt ◽  
Amy Henes ◽  
Christina Ortega-Peluso ◽  
Haven Battles

Purpose: To understand the tobacco acquisition practices of low-income smokers in New York State in light of high cigarette prices due to high cigarette taxes. Design: Eight focus groups with low-income smokers were conducted in spring 2015 and 2016 (n = 74). Setting: New York City (NYC) and Buffalo, New York. Participants: Low-income adults aged 18 to 65 who smoke cigarettes regularly. Method: Qualitative analysis of focus group transcripts that explored differences and similarities by region. We used the interview guide—which covered the process of acquiring cigarettes and the impact of cigarette prices—as a framework for analysis to generate themes and subthemes (deductive coding). We also generated themes and subthemes that emerged during focus group discussions (inductive coding). Results: Some smokers in Western New York have switched to untaxed cigarettes from Native American reservations, whereas low-income smokers in NYC described convenient sources of bootlegged cigarettes (packs or loosies) in their local neighborhood stores, through acquaintances, or on the street. Familiarity with the retailer was key to accessing bootlegged cigarettes from retailers. Conclusions: Smokers in this study could access cheaper cigarettes, which discouraged quit attempts and allowed them to continue smoking. The availability of lower priced cigarettes may attenuate public health efforts aimed at reducing smoking prevalence through price and tax increases.


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