The effect of state cigarette tax increases on cigarette sales, 1955 to 1988

Listed in:

• Tax and price in HICs
• Aggregate demand for tobacco products

Abstract

We evaluated the effect of state cigarette tax increases on cigarette sales in the 50 states for the years 1955 to 1988. State cigarette tax increases were associated with an average decline in cigarette consumption of three cigarette packs per capita (about 2.4%). Larger tax increases were associated with larger declines in consumption. Raising state cigarette taxes appears to be an effective public health intervention that can reduce cigarette consumption and its associated health consequences.