James MacKillop|Lauren R. Few|James G. Murphy|Lauren M Wier|John Acker|Cara M. Murphy|Monika Stojek|Maureen H. Carrigan|Frank J. Chaloupka
High?resolution behavioral economic analysis of cigarette demand to inform tax policy
University of Georgia|Brown University|Providence College|University of Georgia|Brown University|Providence College|University of Memphis|Brown University|Providence College|University of Georgia|University of Georgia|University of Georgia|University of South Carolina Aiken|University of Illinois at Chicago
novel methods behavioral economics permit systematic assessment relationship cigarette consumption price towards informing tax policy goals study conduct highresolution analysis cigarette demand large sample adult smokers use data estimate effects tax increases 10 us statesinperson descriptive survey assessmentacademic departments three universitiesadult daily smokers ie five cigarettesday 18 years old 8th grade education n 1056estimated cigarette demand demographics expired carbon monoxidethe cigarette demand curve exhibited highly variable levels price sensitivity especially form leftdigit effects ie high price sensitivity pack prices transitioned one whole number next eg 5806pack 1 tax increase 10 states projected reduce economic burden smoking average 5306 million range 9369765 million increase gross tax revenue average 162 range 114247tobacco price sensitivity nonlinear across demand curve particular packlevel leftdigit price transitions tax increases us states similar price tax rates sample projected result substantial decreases smokingrelated costs substantial increases tax revenues