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Price elasticity of demand for cigarettes by different racial/ethnic groups in the United States
Methods:We analyzed pooled data from the 2006-2007 and 2010-2011 Tobacco Use Supplement to the Current Population Survey. We focused on adults who are aged 18 years or older (N=302,573). A two-part econometric model was used to examine the effect of cigarette prices on smoking participation among all adults and cigarettes smoked per day by smokers for each of the four racial/ethnic groups.
Findings:Smoking prevalence for NH African Americans, NH Whites, NH Asians and Hispanics was 16.1%, 17.5%, 8.8% and 11.3%, respectively. The two-part model showed that the price elasticity for smoking participation was highest for NH Asians (−0.54), followed by NH Whites (−0.35), Hispanics (−0.32) and NH African Americans (−0.27), and the price elasticity for smoking intensity was statistically significant for NH Whites (−0.37) and NH African Americans (−0.18) but not for NH Asians and Hispanics. The sum of these two elasticities provides the overall price elasticity of demand for cigarettes at −0.72 for NH Whites, −0.54 for NH Asians, −0.45 for NH African Americans, and −0.32 for Hispanics.
Conclusion: Our results indicate that all the four racial/ethnic subgroups are responsive to price increases in reducing the overall demand for cigarettes and smoking prevalence. Therefore, increasing tobacco taxes is still a very effective tobacco control policy to reduce smoking.
Learning Areas:
Public health or related public policyLearning Objectives:
Demonstrate how to evaluate the impact of cigarette prices on smoking prevalence and smoking intensity differed across different racial/ethnic subgroups.
Demonstrate that different racial/ethnic subgroups responded to the increase in cigarette prices differently on reducing their smoking prevalence and intensity, and the importance of implementing tobacco tax policy.
Keyword(s): Tobacco Control, Health Disparities/Inequities
Qualified on the content I am responsible for because: I have been working in the field of tobacco control for more than eight years. My research focuses on the economic impact of tobacco on health and healthcare expenditures. My current studies include estimating the economic costs of secondhand smoke exposure in U.S.. I am also interested in the smoking behaviors among California Asians.
Any relevant financial relationships? No
I agree to comply with the American Public Health Association Conflict of Interest and Commercial Support Guidelines, and to disclose to the participants any off-label or experimental uses of a commercial product or service discussed in my presentation.