The Demand for Cigarettes as Derived from the Demand for Weight Control

37 Pages Posted: 16 Feb 2013 Last revised: 21 May 2023

See all articles by John Cawley

John Cawley

Cornell University - College of Human Ecology, Department of Policy Analysis & Management (PAM); Cornell University - College of Arts & Sciences, Department of Economics; Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE); University of Galway - J.E. Cairnes School of Business & Economics; NBER; IZA

Stephanie von Hinke

University of Bristol; Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

Multiple version iconThere are 2 versions of this paper

Date Written: February 2013

Abstract

We provide new evidence on the extent to which the demand for cigarettes is derived from the demand for weight control (i.e. weight loss or avoidance of weight gain). We utilize nationally representative data that provide the most direct evidence to date on this question: individuals are directly asked whether they smoke to control their weight. We find that, among teenagers who smoke frequently, 46% of girls and 30% of boys are smoking in part to control their weight. This practice is significantly more common among youths who describe themselves as too fat than those who describe themselves as about the right weight.The derived demand for cigarettes has important implications for tax policy. Under reasonable assumptions, the demand for cigarettes is less price elastic among those who smoke for weight control. Thus, taxes on cigarettes will result in less behavior change (but more revenue collection and less deadweight loss) among those for whom the demand for cigarettes is a derived demand. Public health efforts to reduce smoking initiation and encourage cessation may wish to design campaigns to alter the derived nature of cigarette demand, especially among adolescent girls.

Suggested Citation

Cawley, John and von Hinke, Stephanie, The Demand for Cigarettes as Derived from the Demand for Weight Control (February 2013). NBER Working Paper No. w18805, Available at SSRN: https://ssrn.com/abstract=2219064

John Cawley (Contact Author)

Cornell University - College of Human Ecology, Department of Policy Analysis & Management (PAM) ( email )

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Stephanie Von Hinke

University of Bristol

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Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )

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Netherlands

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