An Empirical Analysis of Relationship between Degrees of Tobacco Dependence and Price Elasticity of Smoking Amount

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  • たばこへの依存度と喫煙量の価格弾力性の関係についての分析
  • タバコ エ ノ イソンド ト キツエンリョウ ノ カカク ダンリョクセイ ノ カンケイ ニ ツイテ ノ ブンセキ

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In this paper, I estimate relationship between tobacco dependence price elasticity of smoking amount. More precisely, I verify the hypothesis smokers' degree of tobacco dependence is negatively correlated to their price elasticity of smoking amount. Nicotine intake is a proxy variable of tobacco dependence and nicotine intake is a sort of smoking amount. Thus after all, I empirically verify the hypothesis the more nicotine they intake, the lower their price elasticity of nicotine intake. I employ quantile regression and use Japan Household Panel Survey (JHPS). The result supports the hypothesis. On the whole, the more nicotine they intake, the lower their price elasticity of nicotine intake are. Difference between estimates of price elasticity at the 30 percentile and the 90 percentile is around 0.5. The difference is not negligible and thus employing OLS only is not a desirable estimation strategy when we estimate the price elasticity of smoking amount such as nicotine intake. And moreover, empirical result of this paper implies effect of cigarette tax on smoking behavior will be lower. Therefore, other anti-smoking policies may be more effective in the future.

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