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Cigarette Taxes and Smoking Restrictions: Impacts and Policy Implications
Author(s) -
Brown A. Blake
Publication year - 1995
Publication title -
american journal of agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.949
H-Index - 111
eISSN - 1467-8276
pISSN - 0002-9092
DOI - 10.2307/1243817
Subject(s) - excise , economics , price elasticity of demand , consumption (sociology) , revenue , lease , tax revenue , monetary economics , public economics , microeconomics , macroeconomics , finance , social science , sociology
The effects of recently proposed increases in cigarette excise taxes and smoking restrictions on tobacco prices and quantities, quota lease rates, and revenues to tobacco‐producing areas are analyzed. The price elasticity of demand for U.S. cigarette exports is estimated. Proportionally similar increases in smoking restrictions or cigarette taxes are shown to have effects of similar magnitude on cigarette consumption. A policy of reducing price instead of the quantity produced is found to minimize the impact of increased taxes and smoking restrictions on revenues to tobacco‐producing areas.