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The Impact of Tobacco Control Program Expenditures on Aggregate Cigarette Sales: 1981-1998

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  • Matthew C. Farrelly
  • Terry F. Pechacek
  • Frank J. Chaloupka

Abstract

Since the 1998 Master Settlement Agreement between states and the tobacco industry, states have unprecedented resources for programs to reduce tobacco use. Decisions concerning the use of these funds will, in part, be based on the experiences of states with existing programs. We review the experiences of several states that have adopted comprehensive tobacco control programs. We also report estimates from econometric analyses of the impact of tobacco control expenditures on aggregate tobacco use in all states and in selected states with comprehensive programs for the period from 1981 through 1998. Our analyses clearly show that increases in funding for state tobacco control programs reduce tobacco use.

Suggested Citation

  • Matthew C. Farrelly & Terry F. Pechacek & Frank J. Chaloupka, 2001. "The Impact of Tobacco Control Program Expenditures on Aggregate Cigarette Sales: 1981-1998," NBER Working Papers 8691, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:8691
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    Cited by:

    1. Singhal, Monica, 2008. "Special interest groups and the allocation of public funds," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 548-564, April.
    2. 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.
    3. Lovenheim, Michael F., 2008. "How Far to the Border?: The Extent and Impact of Cross-Border Casual Cigarette Smuggling," National Tax Journal, National Tax Association;National Tax Journal, vol. 61(1), pages 7-33, March.
    4. 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.
    5. Gruber, Jonathan & Sen, Anindya & Stabile, Mark, 2003. "Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada," Journal of Health Economics, Elsevier, vol. 22(5), pages 821-842, September.
    6. Lightwood, James & Glantz, Stanton, 2011. "Effect of the Arizona tobacco control program on cigarette consumption and healthcare expenditures," Social Science & Medicine, Elsevier, vol. 72(2), pages 166-172, January.

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    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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