EconPapers    
Economics at your fingertips  
 

Cigarette demand and tax policy for race groups in South Africa

Gregory Berg and William Kaempfer ()

Applied Economics, 2001, vol. 33, issue 9, 1167-1173

Abstract: This paper calculates cigarette demand for race groups in South Africa. Elasticities are the most important information a tax policy analyst can have. Elasticities determine how the tax base will change with a change in the tax rate and thus how government revenues will respond to the tax. Elasticities also determine the excess burden that consumers will bear as a result of the tax. As such, own price, crossprice, and expenditure elasticities are calculated along with government revenue maximizing tax rates, and total and excess burdens. Parametric and semiparametric estimation techniques are used and compared. Results show that a tax on cigarettes will discourage nonsmokers from starting to smoke and mainly raise revenue from current smokers. Furthermore, it is found that consumption behaviours between groups are different implying different government revenue maximizing tax rates for each group affecting the distribution of income.

Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00036840122752 (text/html)
Access to full text is restricted to subscribers.

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:taf:applec:v:33:y:2001:i:9:p:1167-1173

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/RAEC20

DOI: 10.1080/00036840122752

Access Statistics for this article

Applied Economics is currently edited by Anita Phillips

More articles in Applied Economics from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2020-03-29
Handle: RePEc:taf:applec:v:33:y:2001:i:9:p:1167-1173