Centre for Behavioural Economics
National University of Singapore
Institutional Affiliation: National University of Singapore
NBER Working Papers and Publications
|March 2015||Retrospective and Prospective Benefit-Cost Analysis of US Anti-Smoking Policies|
with Donald S. Kenkel, Feng Liu, Hua Wang: w20998
Regulatory policies designed to improve societal welfare by “nudging” consumers to make better choices are increasingly popular. The application of benefit-cost analysis (BCA) to this sort of regulation confronts difficult theoretical and applied issues. In this analysis we contribute a worked example of behavioral BCA of US anti-smoking policies. Our conceptual framework extends the standard market-based approach to BCA to allow for individual failures to make lifetime utility-maximizing choices of cigarette consumption. We discuss how our market-based approach compares to the health benefits approach and the “consumer surplus offset” controversy in recent BCAs of several health-related regulations. We use a dynamic population model to make counterfactual simulations of smoking prevalence...
Published: Jin, Lawrence & Kenkel, Don & Liu, Feng & Wang, Hua, 2015. "Retrospective and Prospective Benefit-Cost Analyses of U.S. Anti-Smoking Policies," Journal of Benefit-Cost Analysis, Cambridge University Press, vol. 6(01), pages 154-186, March. citation courtesy of