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Journal of Economic Perspectives: Vol. 7 No. 4 (Fall 1993)
JEP Volume. 7, Issue 4 | 
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Policy Watch: Alcohol and Cigarette Taxes
Article Citation
Grossman, Michael. 1993. "Policy Watch: Alcohol and Cigarette Taxes."
Journal of Economic Perspectives,
7(4): 211-222.
DOI: 10.1257/jep.7.4.211
DOI: 10.1257/jep.7.4.211
Abstract
Increased excise taxes on cigarettes and alcohol have been suggested as a means to finance (at least partially) the Clinton administration's proposed program of health care reform. We consider the revenue potential of cigarette and alcohol tax hikes and explore the effects on consumption and related outcomes. We present estimates of the social costs and implied optimal tax rates on cigarettes and alcohol. The bulk of the evidence presented here does support higher taxes on cigarettes and alcohol.
Article Full-Text Access
Full-text Article (Complimentary)
Authors
Grossman, Michael (CUNY and NBER)
JEL Classifications
H25: Business Taxes and Subsidies including sales and value-added (VAT
L66: Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
L66: Food; Beverages; Cosmetics; Tobacco; Wine and Spirits
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