IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp5580.html
   My bibliography  Save this paper

Cigarette Taxes and the Social Market

Author

Listed:
  • Hansen, Benjamin

    (University of Oregon)

  • Sabia, Joseph J.

    (San Diego State University)

  • Rees, Daniel I.

    (Universidad Carlos III de Madrid)

Abstract

Previous researchers have argued that the social market for cigarettes insulates its participants from policies designed to curb youth smoking. Using state Youth Risk Behavior Survey data, we examine whether recent changes in state cigarette taxes affected how young smokers obtained their cigarettes. Our estimates suggest that tax increases reduce youth smoking participation primarily through their effect on third-party purchase, although there is evidence that they are negatively related to borrowing among younger teenagers and negatively related to direct purchase among older teenagers.

Suggested Citation

  • Hansen, Benjamin & Sabia, Joseph J. & Rees, Daniel I., 2011. "Cigarette Taxes and the Social Market," IZA Discussion Papers 5580, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp5580
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp5580.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Philip DeCicca & Donald Kenkel & Feng Liu, 2013. "Who Pays Cigarette Taxes? The Impact of Consumer Price Search," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 516-529, May.
    2. Carpenter, Christopher & Cook, Philip J., 2008. "Cigarette taxes and youth smoking: New evidence from national, state, and local Youth Risk Behavior Surveys," Journal of Health Economics, Elsevier, vol. 27(2), pages 287-299, March.
    3. 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.
    4. DeCicca, Philip & Kenkel, Don & Mathios, Alan, 2008. "Cigarette taxes and the transition from youth to adult smoking: Smoking initiation, cessation, and participation," Journal of Health Economics, Elsevier, vol. 27(4), pages 904-917, July.
    5. Austan Goolsbee & Michael F. Lovenheim & Joel Slemrod, 2010. "Playing with Fire: Cigarettes, Taxes, and Competition from the Internet," American Economic Journal: Economic Policy, American Economic Association, vol. 2(1), pages 131-154, February.
    6. William N. Evans & Jeanne S. Ringel & Diana Stech, 1999. "Tobacco Taxes and Public Policy to Discourage Smoking," NBER Chapters, in: Tax Policy and the Economy, Volume 13, pages 1-56, National Bureau of Economic Research, Inc.
    7. Hanson, Andrew & Sullivan, Ryan, 2009. "The Incidence of Tobacco Taxation: Evidence From Geographic Micro-Level Data," National Tax Journal, National Tax Association;National Tax Journal, vol. 62(4), pages 677-698, December.
    8. Frank J. Chaloupka & Michael Grossman, 1996. "Price, Tobacco Control Policies and Youth Smoking," NBER Working Papers 5740, National Bureau of Economic Research, Inc.
    9. Woolcock, Michael & Narayan, Deepa, 2000. "Social Capital: Implications for Development Theory, Research, and Policy," The World Bank Research Observer, World Bank, vol. 15(2), pages 225-249, August.
    10. Jonathan Gruber, 2001. "Risky Behavior among Youths: An Economic Analysis," NBER Books, National Bureau of Economic Research, Inc, number grub01-1, June.
    11. Timothy T. Brown & Richard M. Scheffler & Sukyong Seo & Mary Reed, 2006. "The empirical relationship between community social capital and the demand for cigarettes," Health Economics, John Wiley & Sons, Ltd., vol. 15(11), pages 1159-1172, November.
    12. Lancaster, Tony, 2000. "The incidental parameter problem since 1948," Journal of Econometrics, Elsevier, vol. 95(2), pages 391-413, April.
    13. Philip DeCicca & Donald Kenkel & Alan Mathios, 2002. "Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 144-169, February.
    14. Christopher Carpenter & Philip J. Cook, 2007. "Cigarette Taxes and Youth Smoking: New Evidence from National, State, & Local Youth Risk Behavior Surveys," NBER Working Papers 13046, National Bureau of Economic Research, Inc.
    15. Brett Katzman & Sara Markowitz & Kerry Anne McGeary, 2007. "An empirical investigation of the social market for cigarettes," Health Economics, John Wiley & Sons, Ltd., vol. 16(10), pages 1025-1039, October.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benjamin Hansen & Daniel I. Rees & Joseph J. Sabia, 2013. "Cigarette Taxes and How Youths Obtain Cigarettes," National Tax Journal, National Tax Association;National Tax Journal, vol. 66(2), pages 371-394, June.
    2. DeCicca, Philip & Kenkel, Don & Mathios, Alan, 2008. "Cigarette taxes and the transition from youth to adult smoking: Smoking initiation, cessation, and participation," Journal of Health Economics, Elsevier, vol. 27(4), pages 904-917, July.
    3. DeCicca, Philip & Kenkel, Donald & Liu, Feng, 2013. "Excise tax avoidance: The case of state cigarette taxes," Journal of Health Economics, Elsevier, vol. 32(6), pages 1130-1141.
    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. Dhaval Dave & Bo Feng & Michael F. Pesko, 2019. "The effects of e‐cigarette minimum legal sale age laws on youth substance use," Health Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 419-436, March.
    6. 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.
    7. Rozema, Kyle & Ziebarth, Nicolas R., 2015. "Behavioral Responses to Taxation: Cigarette Taxes and Food Stamp Take-Up," IZA Discussion Papers 8907, Institute of Labor Economics (IZA).
    8. 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.
    9. Andrew Friedson & Moyan Li & Katherine Meckel & Daniel I. Rees & Daniel W. Sacks, 2024. "Exposure to cigarette taxes as a teenager and the persistence of smoking into adulthood," Health Economics, John Wiley & Sons, Ltd., vol. 33(9), pages 1962-1988, September.
    10. Lesley Chiou & Erich Muehlegger, 2014. "Consumer Response to Cigarette Excise Tax Changes," National Tax Journal, National Tax Association;National Tax Journal, vol. 67(3), pages 621-650, September.
    11. Johanna Catherine MacLean & Asia Sikora Kessler & Donald S. Kenkel, 2016. "Cigarette Taxes and Older Adult Smoking: Evidence from the Health and Retirement Study," Health Economics, John Wiley & Sons, Ltd., vol. 25(4), pages 424-438, April.
    12. D. Mark Anderson & Kyutaro Matsuzawa & Joseph J. Sabia, 2020. "Cigarette Taxes and Teen Marijuana Use," NBER Working Papers 26780, National Bureau of Economic Research, Inc.
    13. Michael Kvasnicka & Thomas Siedler & Nicolas R. Ziebarth, 2018. "The health effects of smoking bans: Evidence from German hospitalization data," Health Economics, John Wiley & Sons, Ltd., vol. 27(11), pages 1738-1753, November.
    14. Sen Choudhury, Rebecca & Conway, Karen Smith, 2020. "The effect of tobacco policies on youth physical activity," Economics & Human Biology, Elsevier, vol. 38(C).
    15. Ceren Ertan Yörük & Barş K. Yörük, 2016. "Do Minimum Legal Tobacco Purchase Age Laws Work?," Contemporary Economic Policy, Western Economic Association International, vol. 34(3), pages 415-429, July.
    16. Erik Nesson, 2017. "The Impact of Tobacco Control Policies on Adolescent Smoking: Comparing Self-Reports and Biomarkers," American Journal of Health Economics, MIT Press, vol. 3(4), pages 507-527, Fall.
    17. Nonnemaker, James M. & Farrelly, Matthew C., 2011. "Smoking initiation among youth: The role of cigarette excise taxes and prices by race/ethnicity and gender," Journal of Health Economics, Elsevier, vol. 30(3), pages 560-567, May.
    18. Deliana Kostova & Hana Ross & Evan Blecher & Sara Markowitz, 2010. "Prices and Cigarette Demand: Evidence from Youth Tobacco Use in Developing Countries," NBER Working Papers 15781, National Bureau of Economic Research, Inc.
    19. Carpenter, Christopher & Cook, Philip J., 2008. "Cigarette taxes and youth smoking: New evidence from national, state, and local Youth Risk Behavior Surveys," Journal of Health Economics, Elsevier, vol. 27(2), pages 287-299, March.
    20. Benjamin Hansen & Joseph J. Sabia & Daniel I. Rees, 2017. "Have Cigarette Taxes Lost Their Bite? New Estimates of the Relationship between Cigarette Taxes and Youth Smoking," American Journal of Health Economics, MIT Press, vol. 3(1), pages 60-75, Winter.

    More about this item

    Keywords

    youth smoking; cigarette taxes;

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:iza:izadps:dp5580. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    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.