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Income inequality and cigarette consumption: evidence from the United States

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  • Richard Connelly
  • Rajeev Goel
  • Rati Ram

Abstract

There is enormous literature on the determinants of consumption of cigarettes and other tobacco products, and on the magnitude of the impact of a wide variety of economic and noneconomic factors. Also, a huge amount of research has been done on the association between income inequality and health for which numerous proxies have been used. We seek to link these two strands of scholarship by treating smoking as a major health hazard and considering the association between income inequality and smoking. Using US state-level data for the year 2004, we estimate an augmented model of cigarette consumption in which income inequality is added to a fairly standard specification. Subject to the caveats appropriate for such studies, there is little indication of a significant association between income inequality and the health-retarding behaviour in the form of cigarette smoking. Estimates for other variables are broadly consistent with similar studies.

Suggested Citation

  • Richard Connelly & Rajeev Goel & Rati Ram, 2010. "Income inequality and cigarette consumption: evidence from the United States," Applied Economics Letters, Taylor & Francis Journals, vol. 17(5), pages 423-426.
    • Handle: RePEc:taf:apeclt:v:17:y:2010:i:5:p:423-426
    DOI: 10.1080/13504850701765135
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    References listed on IDEAS

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    1. Angus Deaton, 2003. "Health, Inequality, and Economic Development," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 113-158, March.
    2. Rajeev K. Goel & Michael A. Nelson, 2006. "The Effectiveness of Anti‐Smoking Legislation: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 20(3), pages 325-355, July.
    3. Rajeev Goel & Rati Ram, 2004. "Quantile-regression estimates of cigarette demand elasticities for the United States," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(3), pages 413-421, September.
    4. Craig A. Gallet & John A. List, 2003. "Cigarette demand: a meta‐analysis of elasticities," Health Economics, John Wiley & Sons, Ltd., vol. 12(10), pages 821-835, October.
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    Cited by:

    1. Goel, Rajeev K. & Payne, James E. & Saunoris, James W., 2016. "Spillovers from the beer market to U.S. cigarette demand," Economic Modelling, Elsevier, vol. 55(C), pages 292-297.
    2. Lingxiao Wang & Yuqing Zheng & Steven C. Buck, 2021. "How does the affordable care act Medicaid expansion affect cigarette consumption?—The mechanism and heterogeneity," Journal of Consumer Affairs, Wiley Blackwell, vol. 55(3), pages 763-791, September.

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