Document Type

Working Paper

Date

2008

Embargo Period

6-28-2012

Keywords

Cigarette demand, excise taxes, legislative endogeneity

Language

English

Disciplines

Taxation

Description/Abstract

The well-documented correlation between cigarette excise taxes and cigarette demand may not be entirely causal if excise taxes reflect public sentiment towards smoking. I consider whether proxies for smoking sentiment--the prevalence of smoking by education and intention to quit statuses--are correlated with support for and implementation of tobacco control laws. I find that cigarette excise taxes are most sensitive to the prevalence of educated smokers who do not want to quit. Additionally, when proxies for public sentiment are included, the estimated elasticity of cigarette demand declines from -2.0 to -1.3.

Additional Information

Harvest from RePEc at http://repec.org

Source

Metadata from RePEc

Included in

Taxation Commons

Share

COinS