A 'Long March' Perspective on Tobacco Use in Canada

28 Pages Posted: 1 Apr 2005

See all articles by Nikolay Gospodinov

Nikolay Gospodinov

Federal Reserve Bank of Atlanta

Ian Irvine

Concordia University, Quebec - Department of Economics

Abstract

In this paper we present a model of tobacco demand in Canada, with a view to establishing if price and tax policy on the one hand or educational, regulatory, and demographic influences on the other have been primarily responsible for the substantial drop in consumption since 1980. We address some methodological and econometric issues that have escaped the attention of some analysts to this point. Using data for the period 1972-2000, we find that non-price developments have had a strong deterrent effect and that the price elasticity of demand is now lower than even the recently obtained low estimates propose. These findings have strong public policy content.

JEL Classification: I12, C13, C22

Suggested Citation

Gospodinov, Nikolay and Irvine, Ian, A 'Long March' Perspective on Tobacco Use in Canada. Canadian Journal of Economics, Vol. 38, No. 2, pp. 366-393, May 2005. Available at SSRN: https://ssrn.com/abstract=696950

Nikolay Gospodinov (Contact Author)

Federal Reserve Bank of Atlanta ( email )

Atlanta, GA 30309
United States

HOME PAGE: https://www.frbatlanta.org/research/economists/gospodinov-nikolay.aspx?panel=1

Ian Irvine

Concordia University, Quebec - Department of Economics ( email )

1455 de Maisonneuve Blvd. W.
Montreal, Quebec H3G 1MB
Canada

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