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

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....

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Bibliographic Details
Published in:Journal of health economics 2004, Vol.23 (1), p.173-189
Main Authors: Lance, Peter M, Akin, John S, Dow, William H, Loh, Chung-Ping
Format: Article
Language:English
Subjects:
Adult
China
China - epidemiology
Cigarette Demand
Cigarettes
Comparative analysis
Consumer Behavior - economics
Demand
Developing countries
Development
Economic models
Economics
Family Characteristics
Fees and Charges - trends
Female
Health
Health administration
Health promotion
Humans
Inflation, Economic
LDCs
Longitudinal Studies
Low income countries
Male
Middle Aged
Models, Econometric
Price elasticities
Price elasticity
Russia
Russia - epidemiology
Russian Federation
Smoking
Smoking - economics
Smoking - epidemiology
Studies
Surveys
Tobacco
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Description
Summary: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.
ISSN:0167-6296
1879-1646
DOI:10.1016/j.jhealeco.2003.09.004