Premium
DOES SPENDING MORE ON TOBACCO CONTROL PROGRAMS MAKE ECONOMIC SENSE? AN INCREMENTAL BENEFIT‐COST ANALYSIS USING PANEL DATA
Author(s) -
CHATTOPADHYAY SUDIP,
PIEPER DAVID R.
Publication year - 2012
Publication title -
contemporary economic policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.454
H-Index - 49
eISSN - 1465-7287
pISSN - 1074-3529
DOI - 10.1111/j.1465-7287.2011.00302.x
Subject(s) - tobacco control , panel data , control (management) , public economics , state (computer science) , economics , business , econometrics , computer science , medicine , public health , nursing , management , algorithm
This paper presents a benefit‐cost analysis of the ongoing, state‐level tobacco prevention and control programs in the United States. Using state‐level panel data for the years 1991–2007, the study applies several variants of econometric modeling approaches to estimate the state‐level tobacco demand. The paper finds a statistically significant evidence of a sustained and steadily increasing long‐run impact of the tobacco control program spending on cigarette demand in states. The study also shows that, if individual states follow the Best Practices funding guidelines, potential future annual benefits of the tobacco control program can be as high as 14–20 times the cost of program implementation. ( JEL C2, H5, I1)