Cigarette Taxes and the Social Market

51 Pages Posted: 21 Mar 2011

See all articles by Benjamin Hansen

Benjamin Hansen

University of Oregon - Department of Economics; NBER; IZA

Joseph J. Sabia

San Diego State University - Department of Economics

Daniel I. Rees

University of Colorado Denver; National Bureau of Economic Research (NBER)

Abstract

Previous researchers have argued that the social market for cigarettes insulates its participants from policies designed to curb youth smoking. Using state Youth Risk Behavior Survey data, we examine whether recent changes in state cigarette taxes affected how young smokers obtained their cigarettes. Our estimates suggest that tax increases reduce youth smoking participation primarily through their effect on third-party purchase, although there is evidence that they are negatively related to borrowing among younger teenagers and negatively related to direct purchase among older teenagers.

Keywords: youth smoking, cigarette taxes

JEL Classification: I10, I12

Suggested Citation

Hansen, Benjamin and Sabia, Joseph J. and Rees, Daniel I., Cigarette Taxes and the Social Market. IZA Discussion Paper No. 5580, Available at SSRN: https://ssrn.com/abstract=1790691

Benjamin Hansen

University of Oregon - Department of Economics ( email )

1285 University of ORegon
Eugene, OR 97403
United States

NBER ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

IZA ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Joseph J. Sabia

San Diego State University - Department of Economics ( email )

5500 Campanile Drive
San Diego, CA 92182
United States

Daniel I. Rees

University of Colorado Denver ( email )

Campus Box 181
P.O. Box 173364
Denver, CO 80218
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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