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Do cigarette producers price-discriminate by state? An empirical analysis of local cigarette pricing and taxation.
- Source :
-
Journal of Health Economics . Aug1996, Vol. 15 Issue 4, p499-512. 14p. - Publication Year :
- 1996
-
Abstract
- This study analyzes the interactive effects of oligopoly pricing, state taxation, and anti-smoking regulations on retail cigarette prices by state, using panel data for the 50 US states between 1960 and 1990. The results indicate that cigarette producers do price-discriminate by state, though the effect is not large relative to the final retail price. There are two further results: (1) state taxes are more than passed on - a 1-cent state tax increase results in a price increase of 1.11 cents, and (2) sellers offset state and local anti-smoking laws with lower prices, thereby blunting effects of the regulations. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 01676296
- Volume :
- 15
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Journal of Health Economics
- Publication Type :
- Academic Journal
- Accession number :
- 139486659
- Full Text :
- https://doi.org/10.1016/s0167-6296(96)00498-5