TY  - JOUR
AU  - Tauras,John A.
AU  - Chaloupka,Frank J.
TI  - The Demand for Nicotine Replacement Therapies
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 8332
PY  - 2001
Y2  - June 2001
UR  - http://www.nber.org/papers/w8332
L1  - http://www.nber.org/papers/w8332.pdf
N1  - Author contact info:
John A. Tauras
University of Illinois at Chicago
Department of Economics (m/c 144)
College of Liberal Arts and Sciences
601 S. Morgan Street, Room 707
Chicago, IL  60607
Tel: 312/413-3289
Fax: 312/996-3344
E-Mail: tauras@uic.edu

Frank J. Chaloupka, IV
University of Illinois at Chicago
Department of Economics (m/c 144)
College of Liberal Arts and Sciences
601 S. Morgan Street, Room 713
Chicago, IL  60607-7121
Tel: 312/413-2287
Fax: 312/996-3344;630/801-8870
E-Mail: fjc@uic.edu
AB  - This paper is the first econometric study to examine the determinants of nicotine replacement therapy (NRT) demand. Pooled cross-sectional time-series scanner-based data for 50 major metropolitan markets in the United States covering the period between the second quarter 1996 and the third quarter 1999 are used in the analysis.  Fixed-effects modeling is employed to assess the impact of NRT prices, cigarette prices, and other determinants on NRT demand.  The estimates indicate that decreases in the price of NRT and increases in the price of cigarettes would lead to substantial increases in per-capita sales of NRT products.  The average own-price elasticity of demand for Nicoderm CQ, Nicorette, and Nicotrol is -1.4, -1.5, and -1.1 respectively.  The average cross-price elasticity of demand for Nicoderm CQ and Nicorette is 0.68 and 0.81 respectively.
ER  -