American Economic Review Vol. 103 No. 7 2013

Taxes, Cigarette Consumption, and Smoking Intensity: Reply

Jérôme Adda¹; Francesca Cornaglia²

¹ Department of Economics, European University Institute, Via della Piazuolla 43, Firenze, 50133 Italy. · ² School of Economics and Finance, Queen Mary University of London, Mile End Road, E1 4NS, London, UK.

Abstract

This paper shows that smoking intensity, i.e. the amount of nicotine extracted per cigarette smoked, responds to changes in excise taxes and tobacco prices. We exploit NHANES data covering the period 1988 to 2006 across many US states. Moreover, using panel data from the Coronary Artery Risk Development in Young Adults (CARDIA) study, we provide new evidence on the importance of cotinine measures in explaining long-run smoking behavior. We show the importance of smoking intensity as a long-run determinant of smoking cessation. We also investigate the sensitivity of smoking cessation to changes in excise taxes and their interaction with smoking intensity.

DOI

10.1257/aer.103.7.3102

Volume

103

Issue

7

Pages

3102-3114

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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