IDEAS home Printed from https://ideas.repec.org/a/aea/aejpol/v8y2016i4p103-23.html
   My bibliography  Save this article

The Effects of Tobacco Control Policies on Tobacco Products, Tar, and Nicotine Purchases among Adults: Evidence from Household Panel Data

Author

Listed:
  • Chad Cotti
  • Erik Nesson
  • Nathan Tefft

Abstract

We analyze the Nielsen Household Consumer Panel to estimate the effects of tobacco policies on tobacco-related purchases using within-household variation. We also match purchases to cigarette contents from NHANES. Higher cigarette taxes reduce cigarette purchases and increase smoking cessation product purchases, while estimates of smoking ban effects are less precisely estimated. Smokeless tobacco (SLT) taxes lead to reductions in SLT use but also lead to substitution among SLT products. We find evidence that cigarette taxes induce purchases of cigarettes with higher tar, nicotine, and carbon monoxide contents, but this compensatory behavior is overwhelmed by the reduction in cigarettes purchased.

Suggested Citation

  • Chad Cotti & Erik Nesson & Nathan Tefft, 2016. "The Effects of Tobacco Control Policies on Tobacco Products, Tar, and Nicotine Purchases among Adults: Evidence from Household Panel Data," American Economic Journal: Economic Policy, American Economic Association, vol. 8(4), pages 103-123, November.
    • Handle: RePEc:aea:aejpol:v:8:y:2016:i:4:p:103-23
    Note: DOI: 10.1257/pol.20150268
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/articles?id=10.1257/pol.20150268
    Download Restriction: no
    File URL: https://www.aeaweb.org/content/file?id=2586
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=GkoQvKbAMbz_4soiOIiX_AZGHS3qxpCU
    Download Restriction: no
    File URL: https://www.aeaweb.org/articles/attachments?retrieve=RWPbLWlpjxLLTP7orSUntDbAsSgN1AVW
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.
    ---><---

    References listed on IDEAS

    as
    1. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    2. John Tauras & Lisa Powell & Frank Chaloupka & Hana Ross, 2007. "The demand for smokeless tobacco among male high school students in the United States: the impact of taxes, prices and policies," Applied Economics, Taylor & Francis Journals, vol. 39(1), pages 31-41.
    3. Jérôme Adda & Francesca Cornaglia, 2006. "Taxes, Cigarette Consumption, and Smoking Intensity," American Economic Review, American Economic Association, vol. 96(4), pages 1013-1028, September.
    4. Matthew Harding & Ephraim Leibtag & Michael F. Lovenheim, 2012. "The Heterogeneous Geographic and Socioeconomic Incidence of Cigarette Taxes: Evidence from Nielsen Homescan Data," American Economic Journal: Economic Policy, American Economic Association, vol. 4(4), pages 169-198, November.
    5. Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004. "How Much Should We Trust Differences-In-Differences Estimates?," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
    6. Dave, Dhaval & Saffer, Henry, 2013. "Demand for smokeless tobacco: Role of advertising," Journal of Health Economics, Elsevier, vol. 32(4), pages 682-697.
    7. Robert L. Ohsfeldt & Raymond G. Boyle & Eli Capilouto, 1997. "Letter: Effects of tobacco excise taxes on the use of smokeless tobacco products in the USA," Health Economics, John Wiley & Sons, Ltd., vol. 6(5), pages 525-531, September.
    8. Johanna Catherine Maclean & Douglas A. Webber & Joachim Marti, 2014. "An Application of Unconditional Quantile Regression to Cigarette Taxes," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 33(1), pages 188-210, January.
    9. repec:wly:soecon:v:80:1:y:2013:p:147-161 is not listed on IDEAS
    10. John A. Tauras, 2006. "Smoke-Free Air Laws, Cigarette Prices, and Adult Cigarette Demand," Economic Inquiry, Western Economic Association International, vol. 44(2), pages 333-342, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Chad Cotti & Erik Nesson & Nathan Tefft, 2019. "Impacts of the ACA Medicaid expansion on health behaviors: Evidence from household panel data," Health Economics, John Wiley & Sons, Ltd., vol. 28(2), pages 219-244, February.
    2. Erik Nesson, 2017. "The Impact of Tobacco Control Policies on Adolescent Smoking: Comparing Self-Reports and Biomarkers," American Journal of Health Economics, MIT Press, vol. 3(4), pages 507-527, Fall.
    3. Andrew Friedson & Moyan Li & Katherine Meckel & Daniel I. Rees & Daniel W. Sacks, 2024. "Exposure to cigarette taxes as a teenager and the persistence of smoking into adulthood," Health Economics, John Wiley & Sons, Ltd., vol. 33(9), pages 1962-1988, September.
    4. Nakamura, Ryota & Yao, Ying, 2021. "Does Restricting the Availability of Cigarettes Reduce Smoking?," Discussion paper series HIAS-E-108, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    5. Michael R. Richards & Joachim Marti & Johanna Catherine Maclean & Jason Fletcher & Donald Kenkel, 2017. "Tobacco Control, Medicaid Coverage, and the Demand for Smoking Cessation Drugs," American Journal of Health Economics, University of Chicago Press, vol. 3(4), pages 528-549, Fall.
    6. Meier, Armando N. & Odermatt, Reto & Stutzer, Alois, 2021. "Tobacco sales prohibition and teen smoking," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 998-1014.
    7. Fabrizio Mazzonna & Paola Salari, 2018. "Can a smoking ban save your heart?," Health Economics, John Wiley & Sons, Ltd., vol. 27(10), pages 1435-1449, October.
    8. Martina Celidoni & Luca Pieroni & Luca Salmasi, 2020. "Further Evidence on the Effect of Clean Indoor Air Laws on Smoking: The Italian Case," Southern Economic Journal, John Wiley & Sons, vol. 86(3), pages 1110-1132, January.
    9. van Ours, Jan C. & Palali, Ali, 2017. "The Impact of Tobacco Control Policies on Smoking Initiation in Europe," CEPR Discussion Papers 12201, C.E.P.R. Discussion Papers.
    10. Yu Wang & Zongshuan Duan & Sherry L. Emery & Yoonsang Kim & Frank J. Chaloupka & Jidong Huang, 2021. "The Association between E-Cigarette Price and TV Advertising and the Sales of Smokeless Tobacco Products in the USA," IJERPH, MDPI, vol. 18(13), pages 1-14, June.
    11. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2019. "The Effects of Traditional Cigarette and E-Cigarette Taxes on Adult Tobacco Product Use," NBER Working Papers 26017, National Bureau of Economic Research, Inc.
    12. Kenchington, David G. & Shohfi, Thomas D. & Smith, Jared D. & White, Roger M., 2022. "Do sin tax hikes spur cheating in interpersonal exchange?," Accounting, Organizations and Society, Elsevier, vol. 96(C).
    13. Sacks, Daniel W. & Hollingsworth, Alex & Nguyen, Thuy & Simon, Kosali, 2021. "Can policy affect initiation of addictive substance use? Evidence from opioid prescribing," Journal of Health Economics, Elsevier, vol. 76(C).
    14. Chen Zhen & Mary Muth & Abigail Okrent & Shawn Karns & Derick Brown & Peter Siegel, 2019. "Do differences in reported expenditures between household scanner data and expenditure surveys matter in health policy research?," Health Economics, John Wiley & Sons, Ltd., vol. 28(6), pages 782-800, June.
    15. Cotti, Chad & Nesson, Erik & Tefft, Nathan, 2018. "The relationship between cigarettes and electronic cigarettes: Evidence from household panel data," Journal of Health Economics, Elsevier, vol. 61(C), pages 205-219.
    16. Vinish Shrestha, 2022. "Revisiting the Effects of Cigarette Taxes on Smoking Outcomes," Working Papers 2022-02, Towson University, Department of Economics, revised Jun 2024.
    17. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    18. Friedson, Andrew I. & Rees, Daniel I., 2020. "Cigarette Taxes and Smoking in the Long Run," IZA Discussion Papers 13252, Institute of Labor Economics (IZA).
    19. Carpenter, Christopher S. & Sansone, Dario, 2021. "Cigarette taxes and smoking among sexual minority adults," Journal of Health Economics, Elsevier, vol. 79(C).
    20. Ali Palali & Jan C. Ours, 2019. "The impact of tobacco control policies on smoking initiation in eleven European countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(9), pages 1287-1301, December.
    21. Michael F. Pesko & Charles J. Courtemanche & Johanna Catherine Maclean, 2020. "The effects of traditional cigarette and e-cigarette tax rates on adult tobacco product use," Journal of Risk and Uncertainty, Springer, vol. 60(3), pages 229-258, June.
    22. Esteban Petruzzello, 2019. "Measuring the Effect of Policy on the Demand for Menthol Cigarettes: Evidence from Household-Level Purchase Data," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(3), pages 422-445, June.
    23. Jan (J.C.) van Ours & Ali Palali, 2017. "The Impact of Tobacco Control Policies on Smoking Initiation in Europe," Tinbergen Institute Discussion Papers 17-074/V, Tinbergen Institute.
    24. Molitor, Ramona, 2017. "Publicly announced speed limit enforcement and its impact on road safety: Evidence from the German Blitzmarathons," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-75-17, University of Passau, Faculty of Business and Economics.
    25. Erik Nelson & John Fitzgerald & Nathan Tefft, 2019. "The distributional impact of a green payment policy for organic fruit," PLOS ONE, Public Library of Science, vol. 14(2), pages 1-25, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Erik Nesson, 2017. "Heterogeneity in Smokers' Responses to Tobacco Control Policies," Health Economics, John Wiley & Sons, Ltd., vol. 26(2), pages 206-225, February.
    2. Cotti, Chad & Courtemanche, Charles & Maclean, Joanna Catherine & Nesson, Erik & Pesko, Michael F. & Tefft, Nathan W., 2022. "The effects of e-cigarette taxes on e-cigarette prices and tobacco product sales: Evidence from retail panel data," Journal of Health Economics, Elsevier, vol. 86(C).
    3. Erik Nesson, 2012. "The Distributional Effects of Tobacco Control Policies On Adult Smoking Behavior," Working Papers 201207, Ball State University, Department of Economics, revised Jun 2012.
    4. Kostova, Deliana & Dave, Dhaval, 2015. "Smokeless tobacco use in India: Role of prices and advertising," Social Science & Medicine, Elsevier, vol. 138(C), pages 82-90.
    5. Odermatt, Reto & Stutzer, Alois, 2015. "Smoking bans, cigarette prices and life satisfaction," Journal of Health Economics, Elsevier, vol. 44(C), pages 176-194.
    6. J?r?me Adda & Francesca Cornaglia, 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply," American Economic Review, American Economic Association, vol. 103(7), pages 3102-3114, December.
    7. Rozema, Kyle & Ziebarth, Nicolas R., 2015. "Behavioral Responses to Taxation: Cigarette Taxes and Food Stamp Take-Up," IZA Discussion Papers 8907, Institute of Labor Economics (IZA).
    8. Yuqing Zheng & Chen Zhen & Daniel Dench & James M. Nonnemaker, 2017. "U.S. Demand for Tobacco Products in a System Framework," Health Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 1067-1086, August.
    9. Scott Adams & Chad D. Cotti & Daniel M. Fuhrmann, 2013. "Smokeless Tobacco Use Following Smoking Bans in Bars," Southern Economic Journal, John Wiley & Sons, vol. 80(1), pages 147-161, July.
    10. Cotti, Chad & Nesson, Erik & Tefft, Nathan, 2018. "The relationship between cigarettes and electronic cigarettes: Evidence from household panel data," Journal of Health Economics, Elsevier, vol. 61(C), pages 205-219.
    11. Karen Smith Conway & David P. Niles, 2017. "Cigarette Taxes, Smoking—and Exercise?," Health Economics, John Wiley & Sons, Ltd., vol. 26(8), pages 1019-1036, August.
    12. Abel Brodeur, 2012. "Smoking, Income and Subjective Well-Being: Evidence from Smoking Bans," Working Papers halshs-00664269, HAL.
    13. Mueller-Langer, Frank & Fecher, Benedikt & Harhoff, Dietmar & Wagner, Gert G., 2019. "Replication studies in economics—How many and which papers are chosen for replication, and why?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 48(1), pages 62-83.
    14. Brady P. Horn & Johanna Catherine Maclean & Michael R. Strain, 2017. "Do Minimum Wage Increases Influence Worker Health?," Economic Inquiry, Western Economic Association International, vol. 55(4), pages 1986-2007, October.
    15. Lesley Chiou & Erich Muehlegger, 2014. "Consumer Response to Cigarette Excise Tax Changes," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 621-650, September.
    16. Christopher Carpenter, 2007. "How Do Workplace Smoking Laws Work? Quasi-Experimental Evidence from Local Laws in Ontario, Canada," NBER Working Papers 13133, National Bureau of Economic Research, Inc.
    17. Mary Hrywna & Irina B. Grafova & Cristine D. Delnevo, 2019. "The Role of Marketing Practices and Tobacco Control Initiatives on Smokeless Tobacco Sales, 2005–2010," IJERPH, MDPI, vol. 16(19), pages 1-15, September.
    18. Markowitz, Sara, 2008. "The effectiveness of cigarette regulations in reducing cases of Sudden Infant Death Syndrome," Journal of Health Economics, Elsevier, vol. 27(1), pages 106-133, January.
    19. Jason Abrevaya & Laura Puzzello, 2012. "Taxes, Cigarette Consumption, and Smoking Intensity: Comment," American Economic Review, American Economic Association, vol. 102(4), pages 1751-1763, June.
    20. Vincenzo Andrietti & Xuejuan Su, 2019. "Education curriculum and student achievement: theory and evidence," Education Economics, Taylor & Francis Journals, vol. 27(1), pages 4-19, January.

    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejpol:v:8:y:2016:i:4:p:103-23. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.