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Publication Date:
August 2010
ISSN:
1935-1682
DOI:
10.2202/1935-1682.2438

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Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Ludwig, Sandra / Requate, Till / Schneider, Hilmar / Tsui, Kevin / Wichardt, Philipp

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U.S. Cigarette Demand: 1944-2004

Kai-Wen Cheng1 / Don S Kenkel2

1University of California, San Francisco, kai-wen.cheng@ucsf.edu

2Cornell University, dsk10@cornell.edu

Citation Information: The B.E. Journal of Economic Analysis & Policy. Volume 10, Issue 1, Pages –, ISSN (Online) 1935-1682, DOI: 10.2202/1935-1682.2438, August 2010

Publication History:
Published Online:
2010-08-31

Abstract

We analyze individual-level data on cigarette smoking from 23 national cross-sectional surveys conducted by the Gallup Poll from 1944 through 2004. We estimate standard two-part models of cigarette demand as a function of demographics, income, and cigarette prices. Over the sixty year time-span covered in our data, smoking participation falls from almost 50 percent to 22 percent. We find that the influences of key demographic factors on cigarette demand change over time: the gender difference in smoking rates almost disappears, the black-white difference reverses, a strong gradient with schooling emerges, and a negative income elasticity emerges.

Keywords: cigarette demand

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