Re-examining the price sensitivity of demand for cigarettes with quantile regression.

Abstract:

:Existing studies suggest that teenagers, young adults, and individuals of low socioeconomic status are more sensitive to changes in cigarette prices. However, little is known as to whether there are differences in price sensitivity between heavy and light smokers. To examine this gap, the present study uses quantile regression to estimate price sensitivity of demand for smokers with different levels of tobacco consumption. We conducted a national personal interview survey in Taiwan and the results showed price sensitivity is positively associated with the level of cigarette consumption. The data indicate that pricing strategies are more likely to notably reduce cigarette consumption for heavy smokers. Our findings suggest policymakers can meet target control for cigarette consumption by effectively adjusting market prices of cigarettes.

journal_name

Addict Behav

journal_title

Addictive behaviors

authors

Chen CM,Chang KL,Lin L

doi

10.1016/j.addbeh.2013.07.003

subject

Has Abstract

pub_date

2013-12-01 00:00:00

pages

2801-4

issue

12

eissn

0306-4603

issn

1873-6327

pii

S0306-4603(13)00204-9

journal_volume

38

pub_type

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