Do Higher Tobacco Taxes Reduce Adult Smoking? New Evidence of the Effect of Recent Cigarette Tax Increases on Adult Smoking

• DOI: 10.3386/w18326
• Publication Date: 2012-09-15T01:46:10Z
• Authors: Kevin Callison; Robert Kaestner

There is a general consensus among policymakers that raising tobacco taxes reduces cigarette consumption.However, evidence reduce adult smoking relatively sparse.In this paper, we extend the literature in two ways: using data from Current Population Survey Tobacco Use Supplements focus on recent, large tax changes, which provide best opportunity to empirically observe response consumption, and employ novel paired difference-in-differences technique estimate association between increases consumption.Estimates indicate that, for adults, either participation or intensity negative, small not usually statistically significant.Our suggests are associated with decreases consumption it will take sizable increases, order of 100%, decrease by as much 5%.