Sugar-Sweetened Beverage Taxes and Public Health

Outlines research linking consumption of sodas and other sugar-sweetened drinks with obesity and type 2 diabetes. Explores the effectiveness of taxing such beverages to generate revenue, reduce consumption among at-risk groups, and promote public health

Men, Women, and Addiction: The Case of Cigarette Smoking

Cigarette demand equations, derived from the Becker-Murphy model of rational addictive behavior, are estimated separately for men and women. These demand equations account for the reinforcement, tolerance, and withdrawal factors characterizing addictive consumption. Results obtained from these demand equations support the hypothesis that cigarette smoking is an addictive behavior. Particularly interesting are the findings that men are responsive to changes in the price of cigarettes, with a long run price elasticity centered on -0.60, while women are virtually unresponsive to price changes. Men, however, are found to behave more myopically than women.

State Drug Control and Illicit Drug Participation

The purpose of this paper is to estimate the effect of state criminal justice expenditures and state public health expenditures on deterring illicit drug use. The empirical model is based on a demand and supply model of drug markets. The effect of a given expenditure on criminal justice or public health programs is dependent on the magnitude of the resulting shifts in the two functions and the demand price elasticity. A reduced form of the demand and supply model is also estimated. The data employed come from the 1990 and 1991 National Household Surveys on Drug Abuse (NHSDA). Data on state and local spending for drug related criminal justice and drug related public health programs were merged with the NHSDA. The main findings from the regression results are that drug control spending reduces drug use. However, the results suggest for marijuana users, the marginal cost of drug control exceeds the social benefits of drug control. This may not be the case for users of other illicit drugs. Spending for drug enforcement by police and drug treatment are found most effective in deterring drug use. However, spending for correctional facilities is never significant which suggests that a more efficient method of reducing drug use might be to reduce correctional facilities spending and increase spending on treatment.

Breath Testing and the Demand for Drunk Driving

This paper presents an empirical investigation of the effect of a preliminary breath test law on drunk driving behavior. A preliminary breath test law reduces the procedural problems associated with obtaining evidence of drunk driving and thus increases the probability that a drunk driver will be arrested. In 1985, only 23 states had a preliminary breath test law. According to the theory of deterrence, increasing the probability of arrest for drunk driving will reduce the future occurrence of this behavior. The data set employed to test the theory is a time series from 1980 to 1985 of cross sections of the 48 contiguous states. Four highway mortality rates are used as measures of drunk driving. The effect of the breath test law was estimated using four independent variable models and 12 dummy variable models. The four independent variable models were also estimated using Leamer's specification test. The purpose of using these alternative specifications and Leamer's specification test was to examine the breath test coefficients for specification bias. The econometric results show that the passage of a breath test law has a significant deterrent effect on drunk driving. Simulations with these results suggest that if all states had a preliminary breath test law, highway mortality could be reduced by about 2000 deaths per year.

Do Youths Substitute Alcohol and Marijuana? Some Econometric Evidence

Data from the 1982 and 1989 Monitoring the Future Surveys are used to examine the substitutability of alcoholic beverages and marijuana among youths. Beer prices and minimum legal drinking ages are used as measures of the full price of alcohol, while an indicator of marijuana decriminalization and its money price capture the full price of marijuana. Results indicate that drinking frequency and heavy drinking episodes are negatively related to beer prices, but positively related to the full price of marijuana. The implications of this substitution for one of the consequences of youth substance abuse, driving while intoxicated, is examined using information on youth non-fatal accidents taken from the surveys and on youth fatal motor vehicle accidents constructed from the Fatal Accident Reporting System. These results indicate that the net effect of an increase in the full price of alcoholic beverages on the probability of a youth traffic crash is negative. However, the opposite is found for marijuana. That is, the results imply that the reduction in accidents resulting from substitution away from alcoholic beverages and other intoxicating substances to marijuana as its full price is lower more than offsets the increase in accidents related to marijuana use.

The Impact of the 2009 Federal Tobacco Excise Tax Increase on Youth Tobacco Use

Based on surveys of eighth-, tenth-, and twelfth-grade students, examines how the tobacco tax increase affected their use of cigarettes and other tobacco products. Considers contributing factors, such as the size of the tax hike, and policy implications

The Demand For Cigarettes and Restrictions on Smoking in the Workplace

The purpose of this paper is to empirically test the effect that restrictive clean air laws have on the level of smoking. Restrictive clean air laws refers to the laws which prohibit smoking in private workplaces as well as in public places. The data employed in this study consist of a time series of cross sections of the fifty states of the U.S., and Washington D.C., over the time period from 1975 through 1985, Since states where sentiment is strongly against cigarettes are more likely to pass a clean air law, endogeneity between cigarette demand and the clean air law is a problem. A two step estimation model is used to control for endogeneity. Both a single equation and a two equation model of cigarette demand were estimated. The single equation results indicate that a clean air law has a significant negative effect on cigarette demand. However, the two equation model indicates that cigarette demand has a significant negative effect on the probability of passing a clean air law. The results indicate that when endogeneity is controlled for the clean air law dose not have a significant effect on cigarette demand. This does not imply that the enactment of a clean air law would not reduce the level of smoking if such a law were imposed in all states, but rather that only states with low levels of smoking are able to pass restrictive clean sir laws.

Price, Tobacco Control Policies and Youth Smoking

This paper examines effectiveness of several tobacco control policies in discouraging cigarette smoking among youths. These policies include increased cigarette excise taxes (which result in higher cigarette prices), restrictions on smoking in public places and at private worksites, and limits on the availability of tobacco products to youths. The data employed in this research are taken from the 1992, 1993, and 1994 surveys of eighth, tenth, and twelfth grade students conducted by the University of Michigan's Institute for Social Research as part of the Monitoring the Future Project. Site specific cigarette prices and measures of tobacco related policies are added to the survey data. The results indicate that tobacco control policies can be effective in reducing youth cigarette smoking. The average overall estimated price elasticity of youth cigarette demand of 1.313 indicates that large increases in cigarette excise taxes would lead to sharp reductions in youth smoking. Similarly, strong restrictions on smoking in public places would reduce the prevalence of smoking among youths, while limits on smoking in schools would reduce average cigarette consumption among young smokers. However, limits on youth access to tobacco products appear to have little impact on youth cigarette smoking. This is most likely the result of the relatively weak enforcement of these laws.

Price, Tobacco Control Policies and Smoking Among Young Adults

The effects of cigarette prices and tobacco control policies (including restrictions on smoking in public places and limits on the availability of tobacco products to youths) on cigarette smoking among youths and young adults are estimated using data from a nationally representative survey of students in U.S. colleges and universities. Smoking participation rates, the quantity of cigarettes smoked by smokers, and level of smoking equations are estimated using appropriate econometric methods. The estimates indicate that college students are quite sensitive to the price of cigarettes, with an average estimated price elasticity of smoking participation of -0.66 and an overall average estimated price elasticity of cigarette smoking of -1.43. In addition, relatively stringent restrictions on smoking in public places are found to reduce smoking participation rates among college students, while the quantity of cigarettes consumed by smokers is lowered by any restrictions on public smoking. Finally, limits on the availability of tobacco products to underage youths have no impact on college students, almost all of whom can legally purchase these products.