The effect of advertising on cigarette demand has been widely studied. Yet the demand-advertising nexus is not ….S. cigarette demand is inelastic, the income effects are mixed, advertising elasticities are relatively small, post-MSA advertising … effects of the Master Settlement Agreement, and studying the dynamic effects of advertising and smoking. Findings show that U …

elasticity and income elasticity for cigarette demand are obtained. It is noted that price elasticity shows a sizable variation … across the high and low quantity-quartiles. There is a similar variability in the income elasticity, but most of these … estimates lack statistical significance. Besides providing an indication of the variation in the price (and income) elasticity …