Replication data for: Taxes, Cigarette Consumption, and Smoking Intensity: Comment
Principal Investigator(s): View help for Principal Investigator(s) Jason Abrevaya; Laura Puzzello
Version: View help for Version V1
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Project Citation:
Abrevaya, Jason, and Puzzello, Laura. Replication data for: Taxes, Cigarette Consumption, and Smoking Intensity: Comment. Nashville, TN: American Economic Association [publisher], 2012. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-11. https://doi.org/10.3886/E112538V1
Project Description
Summary:
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This paper re-examines Adda and Cornaglia's (2006) evidence on the compensatory behavior of smokers who, in face of higher taxes, are found to reduce their consumption of cigarettes while maintaining their cotinine—a biomarker for nicotine—levels constant.
This comment examines the robustness of the empirical findings in Adda and Cornaglia (2006) using: appropriate clustered standard errors, a larger sample from the same years and survey as the data in Adda and Cornaglia (2006), cigarette-prices instead of and in addition to cigarette-taxes, and sampling weights. The empirical findings of Adda and Cornaglia (2006) are not robust. Further, little systematic evidence of compensatory
behavior is found among subsamples of smokers.
Scope of Project
JEL Classification:
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D12 Consumer Economics: Empirical Analysis
H25 Business Taxes and Subsidies including sales and value-added (VAT)
I12 Health Behavior
D12 Consumer Economics: Empirical Analysis
H25 Business Taxes and Subsidies including sales and value-added (VAT)
I12 Health Behavior
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