IDEAS home Printed from https://ideas.repec.org/a/aph/ajpbhl/19978771126-1130_7.html
   My bibliography  Save this article

The effect of cigarette taxes on cigarette consumption, 1955 through 1994

Author

Listed:
  • Meier, K.J.
  • Licari, M.J.

Abstract

Objectives: This study examines the effectiveness of state and federal taxes in reducing the consumption of cigarettes, estimates the impact of government health warnings, and shows how warnings and taxes interact. Methods: By means of a pooled time-series analysis from 1955 through 1994 with the 50 states as units of analysis, the impact of excise taxes on cigarette consumption for several different models and econometric techniques is assessed. Results: From 1955 through 1994, increases in state taxes were effective in reducing cigarette use. Federal tax increases, however, appear to have been more effective. This difference is partly the result of the 'bootlegging' of cigarettes across state lines and the size of the increases in the federal tax. Cigarette consumption also declined when health warning labels were added. Conclusions: Increases of taxes on cigarettes are associated with declines in the consumption of tobacco. Because of inflation, increased health concerns, and the declining percentage of smokers, however, large reductions in consumption require large tax increases.

Suggested Citation

  • Meier, K.J. & Licari, M.J., 1997. "The effect of cigarette taxes on cigarette consumption, 1955 through 1994," American Journal of Public Health, American Public Health Association, vol. 87(7), pages 1126-1130.
    • Handle: RePEc:aph:ajpbhl:1997:87:7:1126-1130_7
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

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


    Cited by:

    1. 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.
    2. Hanewinkel, Reiner & Isensee, Barbara, 2008. "Opinion on tobacco tax increase: Factors associated with individuals' support in Germany," Health Policy, Elsevier, vol. 86(2-3), pages 234-238, May.
    3. 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.
    4. Heboyan, Vahé & Hovhannisyan, Vardges, 2018. "A Dynamic Quantile Regression Analysis of the US Tobacco Control Policies: Implications of Tobacco Taxes and Tobacco-Free Laws on Young Adult and Adult Cigarette Consumption during 2009-2014," 2018 Annual Meeting, August 5-7, Washington, D.C. 273981, Agricultural and Applied Economics Association.
    5. Richard J. Cebula & Fabrizio Rossi, 2015. "Does the Presence of Very Young Children and/or Older Minor-aged Children in the Home Reduce Cigarette Smoking? Panel Data Evidence for the United States," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 9(4), pages 430-441, November.
    6. 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.
    7. Michael S Sharbaugh & Andrew D Althouse & Floyd W Thoma & Joon S Lee & Vincent M Figueredo & Suresh R Mulukutla, 2018. "Impact of cigarette taxes on smoking prevalence from 2001-2015: A report using the Behavioral and Risk Factor Surveillance Survey (BRFSS)," PLOS ONE, Public Library of Science, vol. 13(9), pages 1-10, September.
    8. Showalter, Mark H., 1999. "Firm behavior in a market with addiction: the case of cigarettes," Journal of Health Economics, Elsevier, vol. 18(4), pages 409-427, August.

    More about this item

    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:aph:ajpbhl:1997:87:7:1126-1130_7. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Christopher F Baum (email available below). General contact details of provider: https://www.apha.org .

    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.