Taxes, Cigarette Consumption, and Smoking Intensity
2006 ◽
Vol 96
(4)
◽
pp. 1013-1028
◽
Keyword(s):
This paper analyses the compensatory behavior of smokers. Exploiting data on cotinine concentration—a metabolite of nicotine—measured in a large population of smokers over time, we show that smokers compensate for tax hikes by extracting more nicotine per cigarette. Our study makes two important contributions. First, as smoking a given cigarette more intensively is detrimental to health, our results question the usefulness of tax increases. Second, we develop a model of rational addiction where agents can also adjust their intensity of smoking, and we show that the previous empirical results suffer from estimation biases.
2012 ◽
Vol 102
(4)
◽
pp. 1751-1763
◽
2012 ◽
Vol 2012
◽
pp. 1-11
◽
2012 ◽
Vol 30
(24)
◽
pp. 2995-3001
◽
Keyword(s):
Keyword(s):
Keyword(s):
2018 ◽
Vol 27
(e2)
◽
pp. e105-e111
◽
Keyword(s):
2006 ◽
Vol 96
(4)
◽
pp. 1013-1028
◽