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 A. (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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Journal Article

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

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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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2279

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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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Population and Health Policies and Programs

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Lance, Peter M.; Akin, John S.; Dow, William H.; & Loh, Chung-Ping A. (2004). Is Cigarette Smoking in Poorer Nations Highly Sensitive to Price? Evidence from Russia and China. Journal of Health Economics, 23(1), 173-89.