EconPapers    
Economics at your fingertips  
 

Tobacco taxes and regressivity

Nikolay Gospodinov () and Ian Irvine ()

Journal of Health Economics, 2009, vol. 28, issue 2, 375-384

Abstract: Recent literature on tobacco taxation suggests that optimal tax rates should be very high. But such high taxes raise concerns over regressivity. Most econometric estimates of elasticities by income group use historic price data that are low, and the usefulness of such estimates is therefore questionable on account of the serious 'out of sample' prediction problem. To address that problem, this paper estimates price elasticities for different socioeconomic groups using recent Canadian survey data for a period during which prices rose to a level of about $7 per pack. The results provide little reason to overturn the traditional concerns about regressivity.

Keywords: Tobacco; taxes; Regressivity; Demand; elasticities (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0167-6296(08)00156-2
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:28:y:2009:i:2:p:375-384

Access Statistics for this article

Journal of Health Economics is currently edited by J. P. Newhouse, A. J. Culyer, R. Frank, K. Claxton and T. McGuire

More articles in Journal of Health Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-03-29
Handle: RePEc:eee:jhecon:v:28:y:2009:i:2:p:375-384