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The continuum‐of‐addiction: cigarette smoking in relation to price among Americans aged 15–29

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  • Jeffrey E. Harris
  • Sandra W. Chan

Abstract

We studied the relationship between current cigarette smoking and price among 34 145 respondents, aged 15–29 years, to the 1992–1993 Tobacco Use Supplements to the Current Population Survey. The price elasticity of current smoking varied inversely with age: −0.831 (S.E. 0.402) for ages 15–17; −0.524 (S.E. 0.256) for ages 18–20; −0.370 (S.E. 0.188) for ages 21–23; −0.202 (S.E. 0.175) for ages 24–26; and −0.095 (S.E. 0.157) for ages 27–29. In response to higher prices, older youth were more likely to reduce the number of cigarettes smoked per day than to quit entirely. Among 15–17‐year‐olds, smoking cigarettes ‘some days’ was more sensitive to price than smoking ‘every day’. Cigarette smoking was inversely related to the prices of premium brands, but not discount brands. Copyright © 1999 John Wiley & Sons, Ltd.

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  • Jeffrey E. Harris & Sandra W. Chan, 1999. "The continuum‐of‐addiction: cigarette smoking in relation to price among Americans aged 15–29," Health Economics, John Wiley & Sons, Ltd., vol. 8(1), pages 81-86, February.
    • Handle: RePEc:wly:hlthec:v:8:y:1999:i:1:p:81-86
    DOI: 10.1002/(SICI)1099-1050(199902)8:1<81::AID-HEC401>3.0.CO;2-D
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    1. Hovhannisyan, Vardges & Bastian, Christopher T. & Devadoss, Stephen, 2020. "An Empirical Analysis of Tobacco Addiction," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304425, Agricultural and Applied Economics Association.
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    3. Ijeoma P. Edoka, 2017. "Implications of Misclassification Errors in Empirical Studies of Adolescent Smoking Behaviours," Health Economics, John Wiley & Sons, Ltd., vol. 26(4), pages 486-499, April.
    4. Pearl Bader & David Boisclair & Roberta Ferrence, 2011. "Effects of Tobacco Taxation and Pricing on Smoking Behavior in High Risk Populations: A Knowledge Synthesis," IJERPH, MDPI, vol. 8(11), pages 1-22, October.
    5. Devereux, M.P. & Lockwood, B. & Redoano, M., 2007. "Horizontal and vertical indirect tax competition: Theory and some evidence from the USA," Journal of Public Economics, Elsevier, vol. 91(3-4), pages 451-479, April.
    6. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547.
    7. Anindya Sen & Tony Wirjanto, 2010. "Estimating the impacts of cigarette taxes on youth smoking participation, initiation, and persistence: empirical evidence from Canada," Health Economics, John Wiley & Sons, Ltd., vol. 19(11), pages 1264-1280, November.
    8. Philip DeCicca & Donald Kenkel & Alan Mathios & Yoon‐Jeong Shin & Jae‐Young Lim, 2008. "Youth smoking, cigarette prices, and anti‐smoking sentiment," Health Economics, John Wiley & Sons, Ltd., vol. 17(6), pages 733-749, June.
    9. Ahmad, Sajjad & Billimek, John, 2007. "Limiting youth access to tobacco: Comparing the long-term health impacts of increasing cigarette excise taxes and raising the legal smoking age to 21 in the United States," Health Policy, Elsevier, vol. 80(3), pages 378-391, March.
    10. Mark N. Harris & Xueyan Zhao, 2004. "Modelling Tobacco Consumption with a Zero-Inflated Ordered Probit Model," Monash Econometrics and Business Statistics Working Papers 14/04, Monash University, Department of Econometrics and Business Statistics.
    11. Paul Frijters & Michael A. Shields & Stephen Wheatley Price & Jenny Williams, 2011. "Quantifying the cost of passive smoking on child health: evidence from children's cotinine samples," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 174(1), pages 195-212, January.
    12. Lisa Farrell & Tim Fry & Mark Harris, 2011. "'A pack a day for 20 years': smoking and cigarette pack sizes," Applied Economics, Taylor & Francis Journals, vol. 43(21), pages 2833-2842.
    13. Okechukwu, Cassandra & Bacic, Janine & Cheng, Kai-Wen & Catalano, Ralph, 2012. "Smoking among construction workers: The nonlinear influence of the economy, cigarette prices, and antismoking sentiment," Social Science & Medicine, Elsevier, vol. 75(8), pages 1379-1386.
    14. Jin, Hyun Joung & Cho, Sung Min, 2021. "Effects of cigarette price increase on fresh food expenditures of low-income South Korean households that spend relatively more on cigarettes," Health Policy, Elsevier, vol. 125(1), pages 75-82.
    15. Sen Anindya & Ariizumi Hideki & Driambe Daciana, 2010. "Do Changes In Cigarette Taxes Impact Youth Smoking? Evidence from Canadian Provinces," Forum for Health Economics & Policy, De Gruyter, vol. 13(2), pages 1-25, August.
    16. Nicholas Apergis & Rajeev Goel & James Payne, 2014. "Dynamics of U.S. State Cigarette Consumption: Evidence from Panel Error Correction Modeling," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 42(1), pages 3-20, March.
    17. Jeffrey E. Harris & Beatriz Lopez-Valcarcel, 2004. "Asymmetric Social Interaction in Economics: Cigarette Smoking Among Young People in the United States, 1992-1999," NBER Working Papers 10409, National Bureau of Economic Research, Inc.
    18. M. Christopher Auld, 2005. "Causal effect of early initiation on adolescent smoking patterns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 38(3), pages 709-734, August.
    19. Dawes, John, 2014. "Cigarette brand loyalty and purchase patterns: An examination using US consumer panel data," Journal of Business Research, Elsevier, vol. 67(9), pages 1933-1943.
    20. Lillard, Dean R. & Molloy, Eamon & Sfekas, Andrew, 2013. "Smoking initiation and the iron law of demand," Journal of Health Economics, Elsevier, vol. 32(1), pages 114-127.
    21. Lisa Farrell & Tim R. L. Fry & Mark N. Harris, 2003. "“A Pack A Day For Twenty Years”:Smoking And Cigarette Pack Sizes," Department of Economics - Working Papers Series 887, The University of Melbourne.

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