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...

Using annual data from Canadian provinces, this paper studies the effects of a drastic reduction in Canadian cigarette taxes in 1994 on cross-border smuggling. The results show that the policy was successful in that the border prices seem to not have had a statistically significant impact on...

This article uses recent US state level data to estimate the demand for cigarettes. The main contribution of this work is that, unlike previous studies, it takes into account both price and nonprice incentives behind the smuggling of cigarettes. The results show the demand for cigarettes to be...

This paper uses a simple two-period model to examine the behaviour of a monopolist who produces a durable good and engages in advertising that is also somewhat durable. It is found that changes in product durability and advertising durability have opposite effects on profit-maximizing output and...

This paper adds to two strands of the economics literature, the literature on product durability and on technical change, in a small way by introducing the possibility that an uncertain invention may be exogenously durable. Durability makes otherwise fully appropriable innovation porous. We...

This paper examines auctions of incentive contracts, where the principal (a government agency) contracts with a private vendor to supply a given quantity. The contract is incomplete as the agent's research behaviour is unobservable and is not in the principal's objective function. The agent,...

The paper studies the effect of price-cap regulation on the research behaviour of a regulated firm and an external developer who are pursuing an uncertain innovation. Contributions of this work include incorporating innovation uncertainty and imperfect appropriability of innovation rewards into...

This article uses state-level US panel data to examine the effects of cigarette advertising on smoking. We disaggregate cigarette advertising into (1) print, (2) outdoor, (3) entertainment and (4) store. How does advertising persist over time across advertising media? Are there differences in...

This paper examines the effectiveness of Pigovian taxation in checking the behaviour of a durable goods monopolist who generates some externality in the production process. The durable good lasts two periods. It is found that while the effect of an increase in the tax is to lower the first...

Socially optimal cost-reducing R&D with product durability is studied. Results show that the first period optimal R&D and output with durability exceed the respective levels without durability. The second period R&D and output are identical to the no durability case.