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Income Elasticity of Demand for Cigarettes: A Cross-Section Analysis

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  • Sackrin, S.M.

Abstract

Empirical investigations seeking to determine the income elasticity of demand for cigarettes in the United States have been few, and have been based chiefly on time-series data. Their findings have been in general agreement, showing the income elasticity to be about 0.5 or 0.6. This article describes an investigation based on a cross-section approach using data from a recent survey of the Bureau of the Census on smoking characteristics in relation to income and other factors. A feature of this investigation is the disaggregation of demand data by age and sew. The income elasticity of demand for cigarettes obtained from this analysis is indicated to be lower than found by earlier investigators. These results are compared with those of previous studies, and some reasons are advanced for the differences.

Suggested Citation

  • Sackrin, S.M., 1957. "Income Elasticity of Demand for Cigarettes: A Cross-Section Analysis," Journal of Agricultural Economics Research, United States Department of Agriculture, Economic Research Service, vol. 9(1), pages 1-10, January.
  • Handle: RePEc:ags:uersja:144895
    DOI: 10.22004/ag.econ.144895
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    Cited by:

    1. Blaine, Thomas W. & Reed, Michael R., 1994. "U.S. Cigarette Smoking and Health Warnings: New Evidence From Post World War II Data," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(2), pages 535-544, December.

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