Analysis of cigarette demand in Argentina: the impact of price changes on consumption and government revenues
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2017
- handle: 10670/1.gluiao
- 0036-3634
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Salud Pública de México
Mots-clés
Salud taxes Tobacco Argentina elasticity health policySujets proches
Duties Fee system (Taxation) Taxation, Incidence of Tax reform Tax policy TaxesCiter ce document
Germán Rodríguez-Iglesias et al., « Analysis of cigarette demand in Argentina: the impact of price changes on consumption and government revenues », Salud Pública de México, ID : 10670/1.gluiao
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Résumé
"Objective. To estimate cigarette demand and to simulate a tax policy targeted to reduce tobacco consumption. Ma- terials and methods. Demand was estimated using a vector error correction model. Simulation exercises present the impact of a tax increase on consumption and revenues. Results. Changes in real income and the real price of ciga- rettes affect the demand for cigarettes in Argentina. The long term price elasticity is 0.279 (a 10% increase in real prices reduces cigarette consumption by 2.79% per quarter) and the long term income elasticity is 0.411 (a 10% increase in real income raises consumption by 4.11% per quarter). Even in a conservative scenario, simulations show that increasing the price of cigarettes by 100% using excise taxes would maximize revenues and reduce cigarette consumption. Conclusion. There is sufficient room to increase taxes, reducing cigarette consumption, while still increasing tax revenues."