There is enormous literature on the determinants of consumption of cigarettes and other tobacco products, and on the magnitude of the impact of a wide variety of economic and noneconomic factors. Also, a huge amount of research has been done on the association between income inequality and...

Based on a cross-section of US states for 2004, this article estimates a demand function for cigarettes after including a proxy for prices in the bordering states and simple proxies for contiguity with Mexico and Canada and for being a major tobacco producer. One major point seems to be that the...