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J Health Econ. 2004 Jan;23(1):173-89.

Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China.

Author information

1
Department of Economics, 107 Gardner Hall, CB 3305, University of North Carolina, Chapel Hill, NC 27599-3305, USA. pmlanc@email.unc.edu

Abstract

We examine cigarette demand in China and Russia using longitudinal micro-level household and community surveys. Previous developing-country price elasticity estimates of around -0.75 have been larger than United States estimates of about -0.4, but the former have relied primarily on aggregate data. In contrast, our micro-level price elasticity estimates in China and Russia range from 0 to -0.15. Thus, raising prices in poorer countries may not reduce smoking to the degree previously suggested.

PMID:
15154693
DOI:
10.1016/j.jhealeco.2003.09.004
[Indexed for MEDLINE]

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