Accession Number:

ADA560993

Title:

The Effect of Cigarette Taxation on Prices: An Empirical Analysis Using Local-Level Data

Descriptive Note:

Research paper

Corporate Author:

NAVAL POSTGRADUATE SCHOOL MONTEREY CA

Report Date:

2012-01-01

Pagination or Media Count:

46.0

Abstract:

This paper combines new, author-collected tax data with data both from the American Chamber of Commerce Researchers Association ACCRA cost of living index COLI and from the Tax Burden on Tobacco TBT to measure the relative effects of city, county, and state excise cigarette taxation on cigarette prices. The results indicate that a 1 increase in the state excise cigarette tax increases cigarette prices between 1.10 and 1.14, but that a 1 increase in a city or county-level excise tax increases prices by 1.07. These findings are similar between premium and generic cigarette brands. Additionally, urban areas located near states with lower cigarette taxes tend to have lower cigarette prices relative to urban areas located near states with the same or higher tax rates.

Subject Categories:

  • Economics and Cost Analysis
  • Government and Political Science

Distribution Statement:

APPROVED FOR PUBLIC RELEASE