Price elasticity estimates of cigarette demand in Vietnam using survey data

A new survey data set is used to obtain estimates of the tax price elasticity of personal giving to tax-deductible charitable causes. Like other surveys, the data here yield a large elasticity estimate, roughly two and a half for a representative household when Tobit estimation is used. One hypothesis for the discrepancy between such large estimates and values close to unity found in tax data is that there is an “itemization effect” reflecting nonrandom selection in tax data; the Florida data do not support this hypothesis. Another explanation for the discrepancy between tax-file-based and survey-based estimates is that the standard use of OLS rather than Tobit biases the elasticity more in survey data, where many people report zero gifts. For the Florida data, using OLS increases the estimated elasticity by about 30%; while this effect cannot explain why the Florida data produce such large elasticities, it suggests that OLS estimates in earlier studies should be used with caution.

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Responsiveness to cigarette prices by different racial/ethnic groups of US adults

Tobacco Control ◽

10.1136/tobaccocontrol-2016-053434 ◽

2017 ◽

Vol 27 (3) ◽

pp. 301-309 ◽

Cited By ~ 6

Author(s):

Tingting Yao ◽

Michael K Ong ◽

Wendy Max ◽

Courtney Keeler ◽

Yingning Wang ◽

...

Keyword(s):

African Americans ◽

Ethnic Groups ◽

Price Elasticity ◽

Local Level ◽

Smoking Intensity ◽

Cigarette Demand ◽

Tobacco Tax ◽

The Impact ◽

Racial Ethnic ◽

Cigarette Prices

ObjectiveTo evaluate the impact of cigarette prices on adult smoking for four US racial/ethnic groups: whites, African–Americans, Asians and Hispanics.MethodsWe analysed pooled cross-sectional data from the 2006/2007 and 2010/2011 Tobacco Use Supplement to the Current Population Survey (n=339 921 adults aged 18+) and cigarette price data from the Tax Burden on Tobacco. Using a two-part econometric model of cigarette demand that controlled for sociodemographic characteristics, state-level antismoking sentiment, local-level smoke-free air laws and monthly indicator, we estimated for each racial/ethnic group the price elasticities of smoking participation, smoking intensity and total demand for cigarettes.ResultsSmoking prevalence for whites, African–Americans, Asians and Hispanics during the study period was 18.3%, 16.1%, 8.2% and 11.3%, respectively. The price elasticity of smoking participation was statistically significant for whites, African–Americans, Asians and Hispanics at −0.26, –0.10, −0.42 and −0.11, respectively. The price elasticity of smoking intensity was statistically significant among whites (−0.22) and African–Americans (−0.17). Overall, the total price elasticity of cigarette demand was statistically significant for all racial/ethnic groups: 0.48 for whites, −0.27 for African–Americans, −0.22 for Asians and −0.15 for Hispanics.ConclusionsOur results suggest that raising cigarette prices, such as via tobacco tax increases, would result in reduced cigarette consumption for all racial/ethnic groups. The magnitude of the effect and the impact on cessation and reduced smoking intensity differ across these groups.

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Price elasticity, block tariffs, and equity of natural gas demand in China: Investigation based on household-level survey data

Journal of Cleaner Production ◽

10.1016/j.jclepro.2018.01.123 ◽

2018 ◽

Vol 179 ◽

pp. 441-449 ◽

Cited By ~ 10

Author(s):

Shipei Zeng ◽

Zhan-Ming Chen ◽

Ahmed Alsaedi ◽

Tasawar Hayat

Keyword(s):

Natural Gas ◽

Survey Data ◽

Price Elasticity ◽

Household Level ◽

Natural Gas Demand

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Estimating the price elasticity for cigarette and chewed tobacco in Pakistan: evidence from microlevel data

Tobacco Control ◽

10.1136/tobaccocontrol-2019-055232 ◽

2020 ◽

Vol 29 (Suppl 5) ◽

pp. s319-s325

Author(s):

Durre Nayab ◽

Muhammad Nasir ◽

Junaid Alam Memon ◽

Mahmood Khalid ◽

Anwar Hussain

Keyword(s):

Health Outcomes ◽

Price Elasticity ◽

Income Group ◽

Smoking Behaviour ◽

Tax Revenue ◽

Tobacco Products ◽

Lower Income Group ◽

Cigarette Demand ◽

Tobacco Taxes ◽

Tiered System

BackgroundWhile there is a large literature on the magnitude of price elasticity of cigarette demand, less is known about the same for chewed tobacco. Moreover, the studies on cigarette demand in Pakistan tend to ignore the heterogeneity in the smoking behaviour. This study estimates price elasticity for cigarette and chewed tobacco demand across different income groups, provinces and regions; and use these coefficients for simulating Pakistan’s tax policy and its impact on revenue and health outcomes.MethodDeaton model was applied on the 2015–2016 Household Integrated Income and Consumption Survey dataset to estimate price elasticities of different tobacco products.ResultsThe demand for cigarettes is unitary elastic (−1.06), suggesting that a 1% increase in cigarette price would reduce its consumption by 1.06%. On the other hand, the demand for chewed tobacco is relatively inelastic (−0.55). Provincially, the own-price elasticity of cigarettes is negative and significant for all but Kyber Pakhtunkhwa (KP) province; whereas that of the chewed tobacco is negative and significant only for KP and Balochistan. Besides, the price elasticity of demand for both tobacco products is negative and significant only for lower income group and the rural region. The tax simulations favour a two-tiered tax system over the existing three-tiered system as the former will bring significantly better tax revenue and health outcomes.ConclusionsWhile confirming the effectiveness of tax policies in curbing tobacco use, this study concludes that higher tobacco taxes could increase tax revenue and improve public health in Pakistan.

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Does cigarette demand respond to price increases in Uganda? Price elasticity estimates using the Uganda National Panel Survey and Deaton’s method

BMJ Open ◽

10.1136/bmjopen-2018-026150 ◽

2019 ◽

Vol 9 (3) ◽

pp. e026150 ◽

Cited By ~ 6

Author(s):

Grieve Chelwa ◽

Corne van Walbeek

Keyword(s):

Price Elasticity ◽

Evidence Base ◽

Cigarette Consumption ◽

Sub Saharan Africa ◽

Panel Survey ◽

Elasticity Of Demand ◽

Excise Taxes ◽

Price Elasticity Of Demand ◽

Tax Revenues ◽

Cigarette Demand

ObjectiveTo provide the first published estimates of the price elasticity of demand for cigarettes in Uganda and thereby contribute to growing the evidence base of the likely impact of excise taxes on cigarette consumption and tax revenues in Sub-Saharan Africa.MethodWe use a linear approximation of the Almost Ideal Demand System along with expenditure data from the Uganda National Panel Survey and exploit the fact that prices of cigarettes vary across geographical space in Uganda.ResultsWe find that cigarettes are price inelastic in Uganda with elasticity estimates ranging between −0.26 and −0.33. That is, we expect that cigarette demand will decline by between 2.6% and 3.3% every time cigarette prices rise by 10%. These elasticity estimates are in line with international evidence and are robust to outliers in the data.ConclusionOur estimates of the price elasticity of demand for cigarettes suggest that the authorities in Uganda can reduce cigarette consumption and simultaneously increase tax revenues by increasing the excise taxes on cigarettes.

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Do Regulations on Smoking Limit Cigarette Demand? An Empirical Evidence from Pakistan

Journal of Applied Economics and Business Studies ◽

10.34260/jaebs.448 ◽

2020 ◽

Vol 4 (4) ◽

pp. 161-186

Author(s):

Assad Ullah Khan ◽

Anwar Shah

Keyword(s):

Cigarette Smoking ◽

Price Elasticity ◽

Cigarette Consumption ◽

University Education ◽

Cigarette Price ◽

Demand Model ◽

Tobacco Policies ◽

Cigarette Demand ◽

Long Run ◽

Cigarette Taxation

Enacting Ordinance No LXXIV 2002, Pakistan has developed crucial anti-tobacco policies in the last two decades. We, therefore, examine in this paper effects of both price (cigarette taxation) and non-price (public regulations on cigarette smoking) anti-tobacco policies on cigarette demand. To accomplish this objective, we examine the short and long run dynamics of cigarette demand in Pakistan using auto-regressive distributed lag (ARDL) estimator covering the period 1981-2018 (annual observations). The study compares price elasticity estimated with and without regulations on cigarette smoking. The result obtained shows that when price increases by 10%, cigarette consumption decreases by 5% in the short run while it decreases by 6.9% in the long run. This finding confirms that cigarette demand model, in Pakistan, is in-elastic. More interestingly, the study finds that non-price regulations on smoking and cigarette demand have negative and statistically significant association. This finding confirms that non-price regulations influences the long-term dynamics of cigarette smoking in Pakistan. Furthermore, we obtain low price elasticity with non-price regulations and high price elasticity without non-price regulations while estimating cigarette demand equation. This empirical result is an evident of the fact that estimated cigarette price elasticity without incorporating non-price regulations into the demand model, are upward biased. The study therefore, concludes that smoking regulation policy based on overstated cigarette price elasticity would produce ambiguous outcomes. Hence, relying only on cigarette taxation (price policy) to regulate cigarette smoking would not produce desirable outcome. In addition, university education is positively and significantly associated with cigarette consumption. This finding show that our university education do not properly convey anti-smoking message to students. To reduce cigarette smoking, Pakistan will have to implement stronger, more comprehensive and better enforced non-price regulations along with taxes on cigarettes.

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Is the Personal Always Political?

Journal of Individual Differences ◽

10.1027/1614-0001/a000230 ◽

2017 ◽

Vol 38 (3) ◽

pp. 133-143 ◽

Cited By ~ 4

Author(s):

Danny Osborne ◽

Yannick Dufresne ◽

Gregory Eady ◽

Jennifer Lees-Marshment ◽

Cliff van der Linden

Keyword(s):

Survey Data ◽

National Survey ◽

Negative Relationship ◽

Openness To Experience ◽

Political Sophistication ◽

Knowledge Based

Abstract. Research demonstrates that the negative relationship between Openness to Experience and conservatism is heightened among the informed. We extend this literature using national survey data (Study 1; N = 13,203) and data from students (Study 2; N = 311). As predicted, education – a correlate of political sophistication – strengthened the negative relationship between Openness and conservatism (Study 1). Study 2 employed a knowledge-based measure of political sophistication to show that the Openness × Political Sophistication interaction was restricted to the Openness aspect of Openness. These studies demonstrate that knowledge helps people align their ideology with their personality, but that the Openness × Political Sophistication interaction is specific to one aspect of Openness – nuances that are overlooked in the literature.

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