In 1988, California voters enacted Proposition 99, increasing the tax on cigarettes by 25 cents per pack effective January 1989. Proposition 99 also earmarked 20% of the revenue raised by this new tax for an anti-smoking media campaign and other educational programs to reduce tobacco use. The...

This paper reviews the parallels between "hidden" regulation in the form of cross subsidies in hospital care and past experience with cross subsidies in transportation and utilities. We review the pervasive regulation of the U.S. health care industry during the past 60 years, evaluate the...

This paper presents a rational addiction model, which integrates the addictive behavior of smokers toward cigarette consumption and the dynamic, profit-maximizing behavior of an oligopoly of cigarette producers. This model is tested on a panel data for eleven western states over the period of...