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Economic stress and cigarette smoking: Evidence from the United States

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  • Goel, Rajeev K.

Abstract

This paper uses pooled data on U.S. states for the post-MSA period to estimate the demand for cigarettes, with the main contribution lying in considering the effects of economic stress/uncertainty. Different measures of economic stress – standard deviations and averages of unemployment and property prices – are considered. Greater economic stress is found to lower cigarette smoking across various specifications. Other findings largely support the literature on cigarette demand — price effects are negative, border price effects are positive and the effect of income is negative.

Suggested Citation

  • Goel, Rajeev K., 2014. "Economic stress and cigarette smoking: Evidence from the United States," Economic Modelling, Elsevier, vol. 40(C), pages 284-289.
    • Handle: RePEc:eee:ecmode:v:40:y:2014:i:c:p:284-289
    DOI: 10.1016/j.econmod.2014.04.009
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    Cited by:

    1. Qing Wang & Jay J. Shen & Chris Cochran, 2016. "Unemployment Rate, Smoking in China: Are They Related?," IJERPH, MDPI, vol. 13(1), pages 1-12, January.
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    3. Eiji Yamamura & Yoshiro Tsutsui, 2019. "Effects of Pregnancy and Birth on Smoking and Drinking Behaviours: A Comparative Study Between Men and Women," The Japanese Economic Review, Japanese Economic Association, vol. 70(2), pages 210-234, June.

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    More about this item

    Keywords

    Cigarettes; Smoking; Economic stress; Uncertainty; Smuggling; United States;
    All these keywords.

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I10 - Health, Education, and Welfare - - Health - - - General

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