Economics of Tobacco Sales :: Economics Essays

H1 demesnes with Smoking Bans and Cigarette Sales each(prenominal) year 440,000 people die, in the United States alone, from the effects of cigarette consume (American Cancer Society, 2004). As discussed by Scheraga & Calfee (1996) as early as the 1950s the U.S. government has utilized several methods to curb the incidence of ingest, from fear publicise to published health warnings. Kao & Tremblay (1988) and Tremblay & Tremblay (1995) agreed that these early interventions by the U.S. government were submissive in the diminution of the national demand for cigarettes in the United States. In more recent years, state governments have joined in the bout against smoking by introducing antismoking regulations. In a research article by Gallet (2004), several aspects of the clean indoor-air laws were closely examined. Set apart from other belles-lettres on the same topic, Gallet (2004) proposed that the degree of enforcement of these laws was just as important as the laws themselves. States that maintained the most restrictive clean-air laws encouraged much more contestation within the cigarette industry hence impairments were adjusted closer to bare(a) cost which caused the availability of supply to increase (Gallet, 2004). Conversely, Keeler, Barnett, Manning, & Sung (1996) concluded that the price adjustment closer to marginal demand could be explained as an endeavor to compensate for the reduction of demand caused by the antismoking laws. Regardless of the opinions of the papers on this aspect of the clean indoor-air laws, both agreed that state regulations that prohibit or limit smoking in public places decreased the cigarette demand. outside(a) variables, excluding state smoking restrictions, may influence state cigarette sales. State cigarette sales may be influenced by bootlegging, identified as the crossing of state lines to purchase cigarettes in a state that sells cigarettes at a less expensive price (Gallet, 2004 Meier & Licari, 1997). Gallet ( 2004) identified bootlegging as Nprice, or the minimum neighbor state price ($). As utter previously, Gallet (2004) examined not only states with clean indoor-air laws, Clean1, but also the degree to which these laws were enforce within the individual states, Clean2. The consensus of the reviewed literature, those both including and excluding the extraneous variable, found that the institutions of state smoking bans affect cigarette sales.DiscussionThe results of this study are consistent with the boilers suit literatures findings (Gallet, 2004 Meirer & Licari, 1997) that states with smoking bans have a decrease in cigarette sales. However, caution is warranted in the true reliability of the data presented in this study, because of the nature of the data.