Does Early Life Exposure to Cigarette Smoke Permanently Harm Childhood Health? Evidence from Cigarette Tax Hikes

David Simon

No 2013-21, Working papers from University of Connecticut, Department of Economics

Abstract: Evidence suggests that excise taxes on tobacco improve fetal health. It remains unknown if smoke exposure causes lasting harm to children. I find that a one dollar increase in the state cigarette excise tax while in-utero causes a 10% decrease in sick days from school, and a 4.5% decrease in the likelihood of having two or more doctor visits in the past 12 months. I find suggestive evidence for decreases in emergency room visits, hospitalizations, and asthma. This supports the hypothesis that exposure to smoking in utero and the first months of life carries significant medium-term costs. My results also suggest that excise tax policy can lead to lasting intergenerational improvements in wellbeing.

JEL-codes: H71 I14 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2013-08, Revised 2015-05
New Economics Papers: this item is included in nep-dem, nep-hea and nep-pbe
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:uct:uconnp:2013-21

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