https://eutils.ncbi.nlm.nih.gov/entrez/eutils/efetch.fcgi?db=pubmed&id=23729501&retmode=xml&tool=Litmetric&email=readroberts32@gmail.com&api_key=61f08fa0b96a73de8c900d749fcb997acc09 237295012014121120211021
1469-994X15112013NovNicotine & tobacco research : official journal of the Society for Research on Nicotine and TobaccoNicotine Tob ResCigarette price minimization strategies in the United States: price reductions and responsiveness to excise taxes.185818661858-6610.1093/ntr/ntt068Because cigarette price minimization strategies can provide substantial price reductions for individuals continuing their usual smoking behaviors following federal and state cigarette excise tax increases, we examined independent price reductions compensating for overlapping strategies. The possible availability of larger independent price reduction opportunities in states with higher cigarette excise taxes is explored.Regression analysis used the 2006-2007 Tobacco Use Supplement of the Current Population Survey (N = 26,826) to explore national and state-level independent price reductions that smokers obtained from purchasing cigarettes (a) by the carton, (b) in a state with a lower average after-tax cigarette price than in the state of residence, and (c) in "some other way," including online or in another country. Price reductions from these strategies are estimated jointly to compensate for known overlapping strategies.Each strategy reduced the price of cigarettes by 64-94 cents per pack. These price reductions are 9%-22% lower than conventionally estimated results not compensating for overlapping strategies. Price reductions vary substantially by state. Following cigarette excise tax increases, the price reduction available from purchasing cigarettes by cartons increased. Additionally, the price reduction from purchasing cigarettes in a state with a lower average after-tax cigarette price is positively associated with state cigarette excise tax rates and border state cigarette excise tax rate differentials.Findings from this large, nationally representative study of cigarette smokers suggest that price reductions are larger in states with higher cigarette excise taxes, and increase as cigarette excise taxes rise.PeskoMichael FMFDepartment of Public Health, Weill Cornell Medical College, New York, NY;LichtAndrea SASKrugerJudy MJMeng25CA113951CANCI NIH HHSUnited StatesJournal ArticleResearch Support, N.I.H., Extramural20130601
EnglandNicotine Tob Res98157511462-2203IMAdolescentAdultAgedCommerceeconomicsCost Savingseconomicslegislation & jurisprudenceFederal GovernmentFemaleHumansMaleMiddle AgedMultivariate AnalysisPublic PolicyRegression AnalysisSmokingeconomicslegislation & jurisprudenceSmoking PreventionState GovernmentTaxeseconomicsTobacco ProductseconomicsUnited StatesYoung Adult201365602013656020141217602014111ppublish23729501PMC379062710.1093/ntr/ntt068ntt068Behm I., Kabir Z., Connolly G. N., Alpert H. R. (2012). Increasing prevalence of smoke-free homes and decreasing rates of sudden infant death syndrome in the United States: An ecological association study. Tobacco Control, 21, 6–11.10.1136/tc.2010.04137621474502Centers for Disease Control and Prevention (2010). State cigarette minimum price laws—United States, 2009. MMWR Morbidity and Mortality Weekly Report, 59, 389–39220379131Chaloupka F. J. (1999). Curbing the epidemic: Governments and the economics of tobacco control. The World Bank. Tobacco Control, 8, 196–201PMC175972810478406Chaloupka F. J., Cummings K. M., Morley C. P., Horan J. K. (2002). Tax, price and cigarette smoking: Evidence from the tobacco documents and implications for tobacco company marketing strategies. Tobacco Control, 11(Suppl. 1)I62–I72PMC176606711893816 Chaloupka F. J., Warner K. E. (1999). The economics of smoking National Bureau of Economic Research Working Paper Series Retrieved from www.nber.org/papers/w7047 Choi K., Hennrikus D., Forster J., St Claire A. W. (2012). Use of price-minimizing strategies by smokers and their effects on subsequent smoking behaviors. Nicotine & Tobacco Research, 14, 864–870.10.1093/ntr/ntr30022193571Cnossen S. A. (2006). Tobacco taxation in the European Union CESifo Working Paper Series. Munich: CESifo Group Munich; DeCicca P., Kenkel D. S., Liu F. (2010). Who pays cigarette taxes? The impact of consumer price search. National Bureau of Economic Research Working Paper Series. Retrieved from www.nber.org/papers/w15942 Farrelly M. C. (2009). Monitoring the tobacco use epidemic V: The environment: factors that influence tobacco use. Preventive Medicine, 48(Suppl. 1)S35–43.10.1016/j.ypmed.2008.10.01219022281Feighery E. C., Ribisl K. M., Schleicher N. C., Zellers L., Wellington N. (2005). How do minimum cigarette price laws affect cigarette prices at the retail level? Tobacco Control, 14, 80–85.10.1136/tc.2004.008656PMC174801015791016Fong G. T., Cummings K. M., Borland R., Hastings G., Hyland A., Giovino G. A., … Thompson M. E. (2006). The conceptual framework of the International Tobacco Control (ITC) Policy Evaluation Project. Tobacco Control, 15(Suppl. 3)iii3–11.10.1136/tc.2005.015438PMC259305316754944Frieden T. R., Mostashari F., Kerker B. D., Miller N., Hajat A., Frankel M. (2005). Adult tobacco use levels after intensive tobacco control measures: New York City, 2002–2003. American Journal of Public Health, 95, 1016–1023.10.2105/AJPH.2004.058164PMC144930215914827Goolsble A., Lovenheim M. F., Slemrod J. (2010). Playing with fire cigarettes, taxes, and competition from the Internet. American Economic Journal: Economic Policy, 2, 131–154.10.1257/Pol.2.1.131Hanewinkel R., Isensee B. (2007). Access to cheaper cross-border cigarettes may decrease smoking cessation intentions in Germany. Tobacco Control, 16, 70–71.10.1136/tc.2006.016600PMC259845517297080Hanewinkel R., Radden C., Rosenkranz T. (2008). Price increase causes fewer sales of factory-made cigarettes and higher sales of cheaper loose tobacco in Germany. Health Economics, 17, 683–693.10.1002/hec.128217948225Harding M., Leibtag E., Lovenheim M. F. (2012). The heterogeneous geographic and socioeconomic incidence of cigarette taxes: Evidence from Nielsen Homescan Data. American Economic Review: Economic Policy, 4, 169–198.10.1257/Pol.4.4.169Hyland A., Bauer J. E., Li Q., Abrams S. M., Higbee C., Peppone L., Cummings K. M. (2005). Higher cigarette prices influence cigarette purchase patterns. Tobacco Control, 14, 86–92.10.1136/tc.2004.008730PMC174800915791017Hyland A., Higbee C., Bauer J. E., Giovino G. A., Cummings K. M. (2004). Cigarette purchasing behaviors when prices are high. Journal of Public Health Management and Practice, 10, 497–50015643371Hyland A., Laux F. L., Higbee C., Hastings G., Ross H., Chaloupka F. J., … Cummings K. M. (2006). Cigarette purchase patterns in four countries and the relationship with cessation: Findings from the International Tobacco Control (ITC) Four Country Survey. Tobacco Control, 15(Suppl. 3)iii59–64.10.1136/tc.2005.012203PMC259306116754948Kengganpanich M., Termsirikulchai L., Benjakul S. (2009). The impact of cigarette tax increase on smoking behavior of daily smokers. Journal of the Medical Association of Thailand, 92(Suppl. 7)S46–5320232561Levy D. T., Cummings K. M., Hyland A. (2000). Increasing taxes as a strategy to reduce cigarette use and deaths: Results of a simulation model. Preventive Medicine, 31, 279–286.10.1006/pmed.2000.069610964642Lewitt E. M., Coate D. (1982). The potential for using excise taxes to reduce smoking. Journal of Health Economics, 1, 121–14510263952Licht A. S., Hyland A. J., O’Connor R. J., Chaloupka F. J., Borland R., Fong G. T., … Cummings K. M. (2011). How do price minimizing behaviors impact smoking cessation? Findings from the International Tobacco Control (ITC) Four Country Survey. International Journal of Environmental Research and Public Health, 8, 1671–1691.10.3390/ijerph8051671PMC310813421655144Luk R., Cohen J. E., Ferrence R., McDonald P. W., Schwartz R., Bondy S. J. (2009). Prevalence and correlates of purchasing contraband cigarettes on First Nations reserves in Ontario, Canada. Addiction, 104, 488–495.10.1111/j.1360-0443.2008.02453.x19207360McGoldrick D. E., Boonn A. V. (2010). Public policy to maximize tobacco cessation. American Journal of Preventive Medicine, 38(Suppl. 3)S327–332.10.1016/j.amepre.2009.11.01720176304O’Connor R. J. (2005). What brands are US smokers under 25 choosing? Tobacco Control, 14, 213.10.1136/tc.2004.010736PMC174802315923474Orzechowski and Walker (2011). Tax burden on tobacco (Vol. 45). Arlington, VA: Author;Pesko M. F., Kruger J., Hyland A. (2012). Cigarette price minimization strategies used by adults. American Journal of Public Health, 102, e19–21.10.2105/ajph.2012.300861PMC348209922742066Ribisl K. M., Williams R. S., Gizlice Z., Herring A. H. (2011). Effectiveness of state and federal government agreements with major credit card and shipping companies to block illegal Internet cigarette sales. PLoS One, 6, e16754.10.1371/journal.pone.0016754PMC303891421340032Samuel K. A., Ribisl K. M., Williams R. S. (2012). Internet cigarette sales and Native American sovereignty: Political and public health contexts. Journal of Public Health Policy, 33, 173–187.10.1057/jphp.2012.422358120Shelley D., Cantrell M. J., Moon-Howard J., Ramjohn D. Q., VanDevanter N. (2007). The $5 man: The underground economic response to a large cigarette tax increase in New York City. American Journal of Public Health, 97, 1483–1488.10.2105/AJPH.2005.079921PMC193147717600270U.S. Department of Health and Human Services (2000). Reducing tobacco use: A report of the surgeon general. Atlanta, GA: Author;White V. M., Gilpin E. A., White M. M., Pierce J. P. (2005). How do smokers control their cigarette expenditures? Nicotine & Tobacco Research, 7, 625–635.10.1080/1462220050018433316085532