Cigarette Taxes, Smoking, and Health in the Long Run

43 Pages Posted: 24 Aug 2021

See all articles by Andrew Friedson

Andrew Friedson

University of Colorado at Denver - Department of Economics

Moyan Li

Indiana University Bloomington

Katherine Meckel

University of California, San Diego (UCSD)

Daniel I. Rees

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

Daniel W. Sacks

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy

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Abstract

Medical experts have argued forcefully that using cigarettes harms health, prompting the adoption of myriad anti-smoking policies. The association between smoking and mortality may, however, be driven by unobserved factors, making it difficult to discern the underlying long-term causal relationship. In this study, we explore the effects of cigarette taxes experienced as a teenager, which are arguably exogenous, on adult smoking participation and mortality. A one-dollar increase in teenage cigarette taxes is associated with an 8 percent reduction in adult smoking participation and a 6 percent reduction in mortality. Mortality effects are most pronounced for heart disease and lung cancer.

JEL Classification: H2, I10, I12

Suggested Citation

Friedson, Andrew and Li, Moyan and Meckel, Katherine and Rees, Daniel I. and Sacks, Daniel W., Cigarette Taxes, Smoking, and Health in the Long Run. IZA Discussion Paper No. 14644, Available at SSRN: https://ssrn.com/abstract=3908859

Andrew Friedson (Contact Author)

University of Colorado at Denver - Department of Economics ( email )

Campus Box 181
P.O. Box 173364
Denver, CO 80217-3364
United States

Moyan Li

Indiana University Bloomington ( email )

Dept of Biology
100 South Indiana Ave.
Bloomington, IN 47405
United States

Katherine Meckel

University of California, San Diego (UCSD) ( email )

9500 Gilman Drive
Mail Code 0502
La Jolla, CA 92093-0112
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

Daniel W. Sacks

Indiana University - Kelley School of Business - Department of Business Economics & Public Policy ( email )

Bloomington, IN 47405
United States

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