NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Health Benefits of Increases in Alcohol and Cigarette Taxes

Michael Grossman

NBER Working Paper No. 3082 (Also Reprint No. r1414)
Issued in June 1990
NBER Program(s):   HE

Health taxes on alcohol and cigarettes imposed by the Federal government of the United States have been very stable since 1951. This paper summarizes research that shows that increased taxation, which results in higher prices, would discourage alcohol abuse and cigarette smoking. One striking finding is that a policy to raise the Federal excise tax on beer in line with the rate of inflation over the last three decades would cut motor vehicle fatalities of 18 to 20 year olds, many of which are alcohol-related, by about 15 percent, saving more than 1,000 lives per year. A second is that over 800,000 premature deaths in the cohort of Americans 12 years and older in 1984 would be averted if the Federal excise tax on cigarettes were restored to its real value in 1951.

download in pdf format
   (383 K)

download in djvu format
   (215 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 (383 K) or DjVu (215 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3082

Published: British Journal of Addiction, Vol. 84, No. 10, pp. 1193-1204, (October 1989).

Users who downloaded this paper also downloaded these:
Decker and Schwartz w7535 Cigarettes and Alcohol: Substitutes or Complements?
Moore w5153 Death and Tobacco Taxes
Saffer w3200 Alcohol consumption and Tax Differentials Between Beer, Wine and Spirits
DeCicca, Kenkel, and Liu w15941 Excise Tax Avoidance: The Case of State Cigarette Taxes
Chaloupka, Peck, Tauras, Xu, and Yurekli w16287 Cigarette Excise Taxation: The Impact of Tax Structure on Prices, Revenues, and Cigarette Smoking
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

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

Contact Us