State tax changes and quasi-experimental price elasticities of U.S. cigarette demand: An update
Badi Baltagi and
Rajeev Goel
Journal of Economics and Finance, 2004, vol. 28, issue 3, 422-429
Abstract:
This paper uses 336 state tax changes across the U.S. spanning 42 years (1956–1997) to provide an updated look at the quasi-experimental price elasticities of cigarette demand. It also studies the sensitivity of these elasticity estimates to changes in the cigarette market over time as well as their sensitivity to border-effect purchases. Besides replicating earlier findings, the results show a downward trend in these elasticities over time and sensitivity to border effect purchases. Policy implications are discussed. Copyright Academy of Economics and Finance 2004
Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:spr:jecfin:v:28:y:2004:i:3:p:422-429
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DOI: 10.1007/BF02751744
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