The impact of introducing a tax on tobacco consumption can be studied trough an adverse selection model. The objective … software: one without taxes set on tobacco consumption and another one with taxes set on tobacco consumption, based on an … earnings levels and the social welfare in case of a smoking agent and in case of a non-smoking agent. …

analyze the tobacco consumption consequences, as this is one of the possible sources for negative externalities in an economy …. Before presenting the modeling techniques, the paper contains an introduction part with data from the Romanian tobacco market … and with arguments related to taxes on the tobacco consumption. …