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Analysis of cigarette demand in Argentina: the impact of price changes on consumption and government revenues

Overview of attention for article published in Salud Pública de México, January 2017
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33 Mendeley
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Title
Analysis of cigarette demand in Argentina: the impact of price changes on consumption and government revenues
Published in
Salud Pública de México, January 2017
DOI 10.21149/7861
Pubmed ID
Authors

Germán Rodríguez-Iglesias, Verónica Schoj, Frank Chaloupka, Beatriz Champagne, Martín González-Rozada

Abstract

To estimate cigarette demand and to simulate a tax policy targeted to reduce tobacco consumption. Demand was estimated using a vector error correction model. Simulation exercises present the impact of a tax increase on consumption and revenues. Changes in real income and the real price of cigarettes affect the demand for cigarettes in Argentina. The long term price elasticity is 0.279 (a 10% increase in real prices reduces cigarette consumption by 2.79% per quarter) and the long term income elasticity is 0.411 (a 10% increase in real income raises consumption by 4.11% per quarter). Even in a conservative scenario, simulations show that increasing the price of cigarettes by 100% using excise taxes would maximize revenues and reduce cigarette consumption. There is sufficient room to increase taxes, reducing cigarette consumption, while still increasing tax revenues.

Mendeley readers

Mendeley readers

The data shown below were compiled from readership statistics for 33 Mendeley readers of this research output. Click here to see the associated Mendeley record.

Geographical breakdown

Country Count As %
Unknown 33 100%

Demographic breakdown

Readers by professional status Count As %
Researcher 9 27%
Student > Master 5 15%
Student > Ph. D. Student 4 12%
Student > Bachelor 3 9%
Lecturer 2 6%
Other 4 12%
Unknown 6 18%
Readers by discipline Count As %
Economics, Econometrics and Finance 14 42%
Medicine and Dentistry 4 12%
Social Sciences 3 9%
Business, Management and Accounting 2 6%
Nursing and Health Professions 1 3%
Other 2 6%
Unknown 7 21%