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Risk‐Benefit Analysis of Cigarette Smoking: Public Policy Implications
Author(s) -
DARDIS RACHEL,
KEANE THOMAS
Publication year - 1995
Publication title -
journal of consumer affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.582
H-Index - 62
eISSN - 1745-6606
pISSN - 0022-0078
DOI - 10.1111/j.1745-6606.1995.tb00051.x
Subject(s) - economics , public economics , price elasticity of demand , public policy , cost–benefit analysis , actuarial science , business , microeconomics , political science , economic growth , law
The objective of this study is to investigate the internal risks and benefits from smoking over the lifetime of a male individual. It differs from many earlier studies in that it focuses on the costs borne by the individual, as opposed to external or societal costs. It also includes the benefits from smoking which play an important role in the individual's smoking decision. Risk‐benefit ratios range from 0.25 to 3.67 depending on the tar and nicotine content of cigarettes, the discount or time preference rate, the value of a life year, and the price elasticity of demand for cigarettes.