Taxes, Cigarette Consumption, and Smoking Intensity: Comment
This paper re-examines Adda and Cornaglia's (2006) evidence on the compensatory behavior of smokers who, in face of higher taxes, are found to reduce their consumption of cigarettes while maintaining their cotinine--a biomarker for nicotine--levels constant. This comment examines the robustness of the empirical findings in Adda and Cornaglia (2006) using: appropriate clustered standard errors, a larger sample from the same years and survey as the data in Adda and Cornaglia (2006), cigarette-prices instead of and in addition to cigarette-taxes, and sampling weights. The empirical findings of Adda and Cornaglia (2006) are not robust. Further, little systematic evidence of compensatory behavior is found among subsamples of smokers.
Year of publication: |
2012
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Authors: | Abrevaya, Jason ; Puzzello, Laura |
Published in: |
American Economic Review. - American Economic Association - AEA. - Vol. 102.2012, 4, p. 1751-63
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Publisher: |
American Economic Association - AEA |
Saved in:
Online Resource
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