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The effect of cigarette prices on youth smoking

โœ Scribed by Hana Ross; Frank J. Chaloupka


Publisher
John Wiley and Sons
Year
2003
Tongue
English
Weight
145 KB
Volume
12
Category
Article
ISSN
1057-9230

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โœฆ Synopsis


Abstract

Prior economic research provides mixed evidence on the impact of cigarette prices on youth smoking. This paper empirically tests the effects of various price measures on youth demand for cigarettes using data collected in a recent nationally representative survey of 17 287 high school students. In addition to commonly used cigarette price measures, the study also examined the effect of price as perceived by the students. This unique information permits the study of the effect of teenโ€specific price on cigarette demand. The analysis employed a twoโ€part model of cigarette demand based on a model developed by Cragg (1971) in which the propensity to smoke and the intensity of the smoking habit are modeled separately. The results confirm that higher cigarette prices, irrespective of the way they are measured, reduce probability of youth cigarette smoking. There is also some evidence of negative price effect on smoking intensity, but it is sensitive to the price measure used in the model. The largest impact on cigarette demand has the teenโ€specific, perceived price of cigarettes. Copyright ยฉ 2002 John Wiley & Sons, Ltd.


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