Author(s): Martin Jamrich, Ján Pokrivčák
Title: Sensitivity of Slovak Demand for Cigarettes to Price Change
Source: International Scientific Days 2018 :: Towards Productive, Sustainable and Resilient Global Agriculture and Food Systems :: Proceedings
ISBN: 978-80-7598-180-6
DOI: https://doi.org/10.15414/isd2018.s13.05
Publisher: Wolters Kluwer ČR, Prague
PY, pages: 2018, 2440-2450
Published on-line: 2018-11-09
Language: eng
Abstract: In 2015 was 10th anniversary of WHO Framework Convention on Tobacco Control.
The effort of decreasing tobacco consumption in the world runs by several methods
as cancelation of small package of cigarettes, pubs and restaurants smoking restrictions,
health warnings and imagines of diseases caused by smoking, and the most
important - price increasing by taxation. Therefore the main aim of this paper is
estimate price elasticity of demand for cigarettes in Slovakia by applying Heckman
sample selection model on Households Budget Survey data for time period 2006-
2012. We also investigate difference in price elasticity between households with light,
moderate and heavy cigarette consumption by quantile regression. Results show that
price of demand for cigarettes is inelastic and has decreasing trend with higher cigarettes
consumption.
Keywords: cigarettes, Heckman sample selection, price elasticity, smoking, quantile
regression
JEL Classification: C24, C31, I10 Q11
Rights:Open Access :: Creative Commons BY-NC-SA 4.0 International Licence
Toto dielo je publikované pod/This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International Licence.
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