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The Heterogeneity of the Cigarette Price Effect on Body Mass Index

43 Pages Posted: 19 May 2012  

George Wehby

University of Iowa

Charles Courtemanche

University of North Carolina (UNC) at Greensboro - Department of Economics

Date Written: May 2012

Abstract

Previous studies estimate the average effect of cigarette price on body mass index (BMI), with recent research showing that their different methodologies all point to a negative effect after several years. This literature, however, ignores the possibility that the effect could vary throughout the BMI distribution or across socioeconomic and demographic groups due to differences in underlying preferences for health or risks for obesity. We evaluate heterogeneity in the long-run impact of cigarette price on BMI by performing quantile regressions and stratifying the sample by race, education, age, and sex. Cigarette price has a highly heterogeneous negative effect that is more than three times as strong at high BMI levels - where weight loss is most beneficial for health - than at low levels. The effects are also strongest for blacks, college graduates, middle-aged adults, and women. We also assess the implications for disparities, conduct robustness checks, and evaluate potential mechanisms.

Suggested Citation

Wehby, George and Courtemanche, Charles, The Heterogeneity of the Cigarette Price Effect on Body Mass Index (May 2012). NBER Working Paper No. w18087. Available at SSRN: https://ssrn.com/abstract=2062720

George Wehby (Contact Author)

University of Iowa ( email )

Charles Courtemanche

University of North Carolina (UNC) at Greensboro - Department of Economics ( email )

Greensboro, NC 27402-6165
United States

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