Quasi-Experimental Price Elasticities of Cigarette Demand and the Bootlegging Effect

Badi H. Baltagi, Rajeev K. Goel

Research output: Contribution to journalArticle

26 Scopus citations

Abstract

This paper updates the Lyon and Simon quasi-experimental price elasticities of cigarette demand and studies their sensitivity to changes in the cigarette market over time as well as their sensitivity to the effects of bootlegging. The results indicate a downward trend in these elasticities over time and an upward bias for states where bootlegging exists. However, once the comparison group is modified to include bootlegging-free states only, this difference over time and across groups becomes statistically insignificant.

Original languageEnglish (US)
Pages (from-to)750-754
Number of pages5
JournalAmerican Journal of Agricultural Economics
Volume69
Issue number4
DOIs
StatePublished - Nov 1987
Externally publishedYes

Keywords

  • Bootlegging
  • Cigarette demand
  • Price elasticities
  • Quasi-experimental method

ASJC Scopus subject areas

  • Agricultural and Biological Sciences (miscellaneous)
  • Economics and Econometrics

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