The Effect of Cigarette Prices on Smoking Decision and Intensity in China
نویسندگان
چکیده
This paper examines the smoking behavior in China using the urban data set from the 1995 Chinese Household Income Study. We investigate the two parts of elasticity through employing two main models. We find the estimate of overall cigarette price elasticity is –0.654 by combining the estimates of participation elasticity and conditional elasticity. The result implies that people still care about the price of cigarettes in China. An increase in the tax on cigarettes might be an effective means to reduce cigarette consumption.
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