Title

An Empirical Investigation of the Social Market for Cigarettes

Department

Economics, Finance, & Quantitative Analysis

Document Type

Article

Publication Date

10-2007

Abstract

A major characteristic of teenage smoking is the ability to bum cigarettes from peers. To date, research into the determinants of teenage smoking has largely ignored the effects of this social market on the smoking decisions of teenagers. In this paper, we estimate the demand for cigarettes using data from the Youth Risk Behavior Survey which distinguishes teens who primarily buy cigarettes from those who primarily borrow cigarettes. Our results demonstrate the ways in which higher cigarette prices and restrictions on smoking influence not only a teen's decision to smoke and the quantity of cigarettes smoked, but also the manner in which cigarettes are acquired. We show that current cigarette regulations are ineffective in reaching the group of light smokers who primarily obtain cigarettes through the social market, thus indicating that alternative measures should be explored in an effort to reduce the number of smokers in the future.

Journal

Health Economics

Journal ISSN

1057-9230

Volume

16

Issue

10

First Page

1025

Last Page

1039

Digital Object Identifier (DOI)

10.1002/hec.1215