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Long-Term Effects of Tobacco Prices Faced by Adolescents

Author

Listed:
  • Auld M. Christopher

    (Department of Economics, University of Victoria, PO Box 1700 STN CSC, Victoria, BC V8W 2Y2, Canada)

  • Zarrabi Mahmood

    (Senior Economist, Alberta Health Services, Edmonton, Alberta, Canada.)

Abstract

Tobacco taxes in Canada varied markedly across time and across regions in the early 1990s. We exploit this variation to estimate the long reach of prices faced in adolescence on smoking behavior roughly a decade later in early to mid-adulthood. Results from a variety of econometric approaches suggest that there is a small but detectable long-run effect of price faced during adolescence. A 10% increase in prices faced during adolescence, holding contemporaneous prices constant, leads to roughly a 1% reduction in adult smoking propensity and intensity. The results are somewhat sensitive to specification and to how price during adolescence is measured.

Suggested Citation

  • Auld M. Christopher & Zarrabi Mahmood, 2015. "Long-Term Effects of Tobacco Prices Faced by Adolescents," Forum for Health Economics & Policy, De Gruyter, vol. 18(1), pages 1-24, January.
    • Handle: RePEc:bpj:fhecpo:v:18:y:2015:i:1:p:1-24:n:1
    DOI: 10.1515/fhep-2014-0005
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    References listed on IDEAS

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    Cited by:

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    2. Lauren Hoehn-Velasco & Michael F. Pesko & Serena Phillips, 2023. "The Long-Term Impact of in Utero Cigarette Taxes on Adult Prenatal Smoking," American Journal of Health Economics, University of Chicago Press, vol. 9(4), pages 605-648.

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    More about this item

    Keywords

    addiction; adolescents; smoking; tobacco tax;
    All these keywords.

    JEL classification:

    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables

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