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Why Take on the Tobacco Industry: the Political Economy of Government Anti-smoking Campaign

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Abstract

The paper shows that government anti-smoking campaign can benefit thegovern-ment in the political bargaining with the tobacco industry by reducing the latter’s alter-native welfare. Although the equilibrium regulation on the tobacco industry increases as a result of government anti-smoking campaign, the political contribution from the tobacco industry will not necessarily go down. Anti-smoking campaign reduces the welfare of the tobacco industry but its potential loss of not lobbying increases. When the incumbent government/politician becomes more hungry for political contribution, it increases its effort in anti-smoking campaign and this could induce more political contribution from the tobacco industry under some plausible conditions.

Suggested Citation

  • Zhihao Yu, 2003. "Why Take on the Tobacco Industry: the Political Economy of Government Anti-smoking Campaign," Carleton Economic Papers 03-04, Carleton University, Department of Economics.
  • Handle: RePEc:car:carecp:03-04
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    References listed on IDEAS

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    More about this item

    Keywords

    Political Economy; Anti-smoking Campaign; Political Contribution; Special Interest Groups;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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