The Effects of Increases in Cigarette Prices on Cigarette Consumption Among Smokers After the Master Settlement Agreement
This paper examines the impact of the large increases in cigarette prices after the Master Settlement Agreement on cigarette consumption among smokers by estimating a dynamic panel data model. I use system generalized method of moments estimator with fixed effects to address the unobserved heterogeneity and the initial conditions problem. I find that older smokers (aged 51 and older) are virtually unresponsive to price changes, and younger smokers (aged 50 and younger) are more price sensitive; women smokers might be more price responsive; and the overall estimated price elasticity for the full sample of smokers is −0.26. In addition, smoke-free air laws do not show significant effects.
Ma, Zhen. "The effects of increases in cigarette prices on cigarette consumption among smokers after the Master Settlement Agreement." Review of Economics of the Household 15, no. 4 (December 2017): 1177-1190. https://doi.org/10.1007/s11150-015-9290-0. Please note that the Publication Information provides general citation information and may not be appropriate for your discipline. To receive help in creating a citation based on your discipline, please visit http://libguides.misericordia.edu/citationguide.