Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level

BACKGROUND: Tobacco prevalence in Colombia is small compared with other Latin America despite the nation's tobacco taxes being among the lowest in the region. However, tobacco taxes have increased several times during the last decade, and large increases in 2010 and 2016 impacted consumer price...

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Autores Principales: Gallego, Juan Miguel, Otálvaro-Ramírez, Susana, Rodriguez-Lesmes, Paul Andres
Formato: Artículo (Article)
Publicado: Tobacco Control 2020
Materias:
Acceso en línea:https://repository.urosario.edu.co/handle/10336/24958
https://doi.org/10.1136/tobaccocontrol-2019-055186
id ir-10336-24958
recordtype dspace
spelling ir-10336-249582020-06-11T13:21:56Z Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level Gallego, Juan Miguel Otálvaro-Ramírez, Susana Rodriguez-Lesmes, Paul Andres Medical and Health Sciences Economics Public Health and Health Services Econometrics Applied Economics BACKGROUND: Tobacco prevalence in Colombia is small compared with other Latin America despite the nation's tobacco taxes being among the lowest in the region. However, tobacco taxes have increased several times during the last decade, and large increases in 2010 and 2016 impacted consumer prices.OBJECTIVE: This paper aims to estimate the price smoking participation elasticity (PPE) in Colombia, with specific reference to regional increases in consumer prices after 2010 tax policy changes.METHODS: The PPE is computed using logistic regression based on individual-level data from the National Psychoactive Substances Consumption Survey for 2008 and 2013. Our specific focus is state-level variation in Colombian cigarette prices between 2008 and 2013 induced by the tax hike in 2010.RESULTS: The estimated PPE in Colombia is around -0.66 (p value=0.046). We find almost no differences across socioeconomic level, but price sensitivity was greater for women than men, and for relatively older individuals (ages 51-64).CONCLUSIONS: PPE for Colombia is above estimates for comparable middle-income countries such as Mexico. As a result, current estimates for health gains of tax policies are likely to be underestimated. Moreover, in contrast with the literature, we find that the PPE for the youth (?25 years) is lower than older age groups, and there is no evidence of a prominent socio-economic status (SES) gradient. 2020-02-11 2020-06-11T13:21:56Z info:eu-repo/semantics/article info:eu-repo/semantics/publishedVersion 09644563 14683318 https://repository.urosario.edu.co/handle/10336/24958 https://doi.org/10.1136/tobaccocontrol-2019-055186 info:eu-repo/semantics/closedAccess application/pdf Tobacco Control instname:Universidad del Rosario reponame:Repositorio Institucional EdocUR
institution EdocUR - Universidad del Rosario
collection DSpace
topic Medical and Health Sciences
Economics
Public Health and Health Services
Econometrics
Applied Economics
spellingShingle Medical and Health Sciences
Economics
Public Health and Health Services
Econometrics
Applied Economics
Gallego, Juan Miguel
Otálvaro-Ramírez, Susana
Rodriguez-Lesmes, Paul Andres
Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level
description BACKGROUND: Tobacco prevalence in Colombia is small compared with other Latin America despite the nation's tobacco taxes being among the lowest in the region. However, tobacco taxes have increased several times during the last decade, and large increases in 2010 and 2016 impacted consumer prices.OBJECTIVE: This paper aims to estimate the price smoking participation elasticity (PPE) in Colombia, with specific reference to regional increases in consumer prices after 2010 tax policy changes.METHODS: The PPE is computed using logistic regression based on individual-level data from the National Psychoactive Substances Consumption Survey for 2008 and 2013. Our specific focus is state-level variation in Colombian cigarette prices between 2008 and 2013 induced by the tax hike in 2010.RESULTS: The estimated PPE in Colombia is around -0.66 (p value=0.046). We find almost no differences across socioeconomic level, but price sensitivity was greater for women than men, and for relatively older individuals (ages 51-64).CONCLUSIONS: PPE for Colombia is above estimates for comparable middle-income countries such as Mexico. As a result, current estimates for health gains of tax policies are likely to be underestimated. Moreover, in contrast with the literature, we find that the PPE for the youth (?25 years) is lower than older age groups, and there is no evidence of a prominent socio-economic status (SES) gradient.
format Artículo (Article)
author Gallego, Juan Miguel
Otálvaro-Ramírez, Susana
Rodriguez-Lesmes, Paul Andres
author_facet Gallego, Juan Miguel
Otálvaro-Ramírez, Susana
Rodriguez-Lesmes, Paul Andres
author_sort Gallego, Juan Miguel
title Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level
title_short Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level
title_full Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level
title_fullStr Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level
title_full_unstemmed Price smoking participation elasticity in Colombia: estimates by age and socioeconomic level
title_sort price smoking participation elasticity in colombia: estimates by age and socioeconomic level
publisher Tobacco Control
publishDate 2020
url https://repository.urosario.edu.co/handle/10336/24958
https://doi.org/10.1136/tobaccocontrol-2019-055186
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score 11,828437