Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada

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Estimating price elasticities when there is smuggling: the sensitivity of smoking to price in Canada.

A central parameter for evaluating tax policies is the price elasticity of demand for cigarettes. But in many countries this parameter is difficult to estimate reliably due to widespread smuggling, which significantly biases estimates using legal sales data. An excellent example is Canada, where widespread smuggling in the early 1990s, in response to large tax increases, biases upwards the resp...

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Price sensitivity and smoking smuggled cigarettes.

BACKGROUND This study analysed the socio-economic factors that influence a smoker's decision to consume smuggled cigarettes when faced with the rising costs of legal cigarettes. We hope our findings will help public health authorities create policies that simultaneously discourage consumption of smuggled cigarettes and lower overall smoking levels. METHODS We conducted a national telephone su...

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ژورنال

عنوان ژورنال: Journal of Health Economics

سال: 2003

ISSN: 0167-6296

DOI: 10.1016/s0167-6296(03)00058-4