Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China

Lance, Peter M.; Akin, John S.; Dow, William H.; & Loh, Chung-Ping. (2004). Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China. Journal of Health Economics, 23(1), 173-89.

Citation:

Lance, Peter M.; Akin, John S.; Dow, William H.; & Loh, Chung-Ping. (2004). Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China. Journal of Health Economics, 23(1), 173-89.

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Abstract:

We examine cigarette demand in China and Russia using longitudinal micro-level household and community surveys. Previous developing-country price elasticity estimates of around −0.75 have been larger than United States estimates of about −0.4, but the former have relied primarily on aggregate data. In contrast, our micro-level price elasticity estimates in China and Russia range from 0 to −0.15. Thus, raising prices in poorer countries may not reduce smoking to the degree previously suggested.

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http://dx.doi.org/10.1016/j.jhealeco.2003.09.004

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JOUR

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Author(s):
Lance, Peter M.
Akin, John S.
Dow, William H.
Loh, Chung-Ping

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Year Published:
2004

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Journal of Health Economics

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23

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1

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173-89

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DOI:
10.1016/j.jhealeco.2003.09.004

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230

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Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China