Tobacco Substitution and the Poor

Steven Koch and Gauthier Kashalala

No 200832, Working Papers from University of Pretoria, Department of Economics

Abstract: Tobacco control policies have effectively raised the price of cigarettes and other tobacco products. However, these price increases have been shown to disproportionately fall upon poorer households, with fewer resources. In this analysis, we provide an initial indication of the effect increased prices might have on household allocations, by considering substitution and complementation related to tobacco consumption. Our results show substitution between tobacco and most household consumption items, although elasticities tend to be highest amongst the poorest households.

Keywords: Crowd-out; Crowd-in; 3SLS; Tobacco Substitution Elasticity (search for similar items in EconPapers)
JEL-codes: C32 D12 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008-10
New Economics Papers: this item is included in nep-hea
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Citations: View citations in EconPapers (4)

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