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  5. Taxes, Cigarette Consumption, and Smoking Intensity: Reply

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Taxes, Cigarette Consumption, and Smoking Intensity: Reply

  • Jérôme Adda
  • Francesca Cornaglia
American Economic Review
vol. 103, no. 7, December 2013
(pp. 3102–14)
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Abstract

This paper shows that smoking intensity, i.e. the amount of nicotine extracted per cigarette smoked, responds to changes in excise taxes and tobacco prices. We exploit NHANES data covering the period 1988 to 2006 across many US states. Moreover, using panel data from the Coronary Artery Risk Development in Young Adults (CARDIA) study, we provide new evidence on the importance of cotinine measures in explaining long-run smoking behavior. We show the importance of smoking intensity as a long-run determinant of smoking cessation. We also investigate the sensitivity of smoking cessation to changes in excise taxes and their interaction with smoking intensity.

Citation

Adda, Jérôme, and Francesca Cornaglia. 2013. "Taxes, Cigarette Consumption, and Smoking Intensity: Reply." American Economic Review, 103 (7): 3102–14. DOI: 10.1257/aer.103.7.3102

Additional Materials

JEL Classification

  • H25 Business Taxes and Subsidies including sales and value-added (VAT)
  • H32 Fiscal Policies and Behavior of Economic Agents: Firm
  • I12 Health Production
  • L11 Production, Pricing, and Market Structure; Size Distribution of Firms
  • L66 Food; Beverages; Cosmetics; Tobacco; Wine and Spirits