SMOKE-FREE AIR LAWS, CIGARETTE PRICES, AND ADULT CIGARETTE DEMAND

This article examines the impact of cigarette prices and smoke‐free air laws on adult smoking. Probit methods and a generalized linear model with log‐link and Gaussian distribution are employed to model adult smoking propensity and intensity, respectively. After controlling for unobserved state‐level heterogeneity, which can influence both tobacco policy and smoking behavior, the estimates from this study imply that an inverse relationship exists between cigarette prices and both smoking prevalence and average cigarette consumption by adult smokers. The estimates also imply that more restrictive smoke‐free air laws decrease average smoking by adult smokers but have little impact on prevalence. (JEL I18)