Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6688
This paper shows that smoking intensity, i.e. the amount of nicotine extracted per cigarette smoked, responds to changes in excise taxes and tobacco prices. We exploit data covering the period 1988 to 2006 across many US states. Moreover, we provide new evidence on the importance of cotinine measures in explaining long-run smoking behavior and we investigate the sensitivity of smoking cessation to changes in excise taxes and their interaction with smoking intensity.
tobacco public health compensatory behavior excise taxes