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The Effect of Cigarette Prices on Youth Smoking

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Submitted By rickybimboy
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Differential Effects of Cigarette Price on Youth Smoking Intensity
1Department of Economics, University of Illinois at Chicago
2Health Research and Policy Centers, University of Illinois at Chicago
3Health Economics Program, National Bureau of Economic Research

ACKNOWLEDGEMENTS
Support for this research was provided by grants from The Robert Wood Johnson Foundation (ImpacTeen – A Policy Research Partnership to Reduce Youth Substance Use) and the Centers for Disease Control and Prevention (Price, Availability and Youth Tobacco Use) to the University of Illinois at Chicago. We thank Lloyd D. Johnston and Patrick J. O’Malley of the University of Michigan’s Institute for Social Research for providing us with selected data from the 1992, 1993 and 1994 Monitoring the Future Surveys. The Monitoring the Future Project is supported by a grant from the National Institute on Drug Abuse

Abstract
Objectives: Data from the 1992, 1993, and 1994 Monitoring the Future Surveys were used to investigate the differential effects of cigarette price on the intensity of youth cigarette smoking.
Methods: Respondents are classified into nonsmokers; individuals who smoked less than one cigarette per day; individuals who smoked one to five cigarettes per day; individuals who smoked one-half pack a day; and individuals who smoked one pack or more a day. A Threshold of Change Model was estimated with information on cigarette prices as the main explanatory variables.
Results: Dummy variables indicating medium and high prices were found to have varying effects on different levels of smoking intensity, even though higher prices were associated with lower smoking in all cases. The differences are more striking in the high price case. The effects of higher prices are largest at the heaviest smoking levels.
Conclusion: Cigarette prices an effective tool to discourage youth smoking.

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