NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Prices and Cigarette Demand: Evidence from Youth Tobacco Use in Developing Countries

Deliana Kostova, Hana Ross, Evan Blecher, Sara Markowitz

NBER Working Paper No. 15781
Issued in February 2010
NBER Program(s):   CH   HE

This paper estimates the impact of cigarette prices on youth smoking in lower-income countries using data from the Global Youth Tobacco Survey (GYTS). Country-level heterogeneity is addressed with fixed effects and by directly controlling for confounding environmental factors such as local anti-smoking sentiment, cigarette advertising, anti-smoking media messages, and compliance with youth access restrictions. We find that cigarette price is an important determinant of both smoking participation and conditional demand. The estimated price elasticity of participation is -0.63. The likelihood of participation decreases with anti-smoking sentiment and increases with exposure to cigarette advertising. The estimated price elasticity of conditional cigarette demand is approximately -1.2. Neither anti-smoking sentiment, cigarette advertising, nor access restrictions have an impact on the intensity of smoking among current smokers, but exposure to anti-smoking media may reduce the number of cigarettes smoked.

download in pdf format
   (175 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (175 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w15781

Published: Deliana Kostova, Hana Ross , Evan Blecher, and Sara Markowitz. Is youth smoking responsive to cigarette prices? Evidence from low - and middle - income countries . Tobacco Control 2011; 20 : 419 - 424

Users who downloaded this paper also downloaded these:
DeCicca, Kenkel, Mathios, Shin, and Lim w12458 Youth Smoking, Cigarette Prices, and Anti-Smoking Sentiment
Callison and Kaestner w18326 Do Higher Tobacco Taxes Reduce Adult Smoking? New Evidence of the Effect of Recent Cigarette Tax Increases on Adult Smoking
Chaloupka, Peck, Tauras, Xu, and Yurekli w16287 Cigarette Excise Taxation: The Impact of Tax Structure on Prices, Revenues, and Cigarette Smoking
Saffer and Chaloupka w6958 Tobacco Advertising: Economic Theory and International Evidence
Chaloupka and Grossman w5740 Price, Tobacco Control Policies and Youth Smoking
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us