Document Type

Article

Date

5-2003

Embargo Period

12-6-2011

Keywords

tbd

Disciplines

Economics

Description/Abstract

An important issue in public policy analysis is the potential endogeneity of the policies under study. We examine the extent to which such political endogeneity biases estimates of behavioral parameters by identifying the elasticity of demand for cigarettes using the timing of state legislative elections as an instrument for changes in cigarette excise taxes. We find sizable differences between our estimates and those cited in Chaloupka and Warner (2000), which treat cigarette taxes as exogenous. Our results add to a growing body of evidence that policy changes may be codetermined with the outcomes they are thought to influence.

Additional Information

This manuscript is from the Social Science Research Network, for more information see http://papers.ssrn.com/sol3/papers.cfm?abstract_id=269609#193443

Source

Harvested from ssrn.com

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

Included in

Economics Commons

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