Cross-country and panel data estimates of the price elasticity of demand for cigarettes in Europe.

ABSTRACT:

Objective

Our goal is to provide estimates of the price elasticity of demand for cigarettes in Europe as a basis for public health policy on tobacco taxation.

Methods

We use secondary data on cigarette retail sales including illicit trade, prices, tobacco control measures and income from 2010 to 2020 of 27 European countries from Euromonitor, the WHO, the Tobacco Control Scale and the World Bank. We estimate the price elasticity of demand using instrumental variable regressions as well as panel data regressions taking into account that prices and quantities are determined simultaneously in the market.

Results

Based on cross-section data at the country level, we find that during the decade from 2010 to 2020, the demand for cigarettes in Europe has become neither more n

SUBMITTER: Kohler A 

PROVIDER: S-EPMC10277038 | biostudies-literature | 2023 Jun

REPOSITORIES: biostudies-literature