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dc.contributor.authorTait, Peter R.en
dc.contributor.authorRutherford, Paulen
dc.contributor.authorSaunders, Caroline M.en
dc.date.accessioned2016-08-15T22:30:59Z
dc.date.available2013-11-20en
dc.date.issued2015-05en
dc.date.submitted2013-10-14en
dc.identifier.citationTait, P., Rutherford, P. & Saunders, C. (2015). Do consumers of manufactured cigarettes respond differently to price changes compared with their roll-your-own counterparts? Evidence from New Zealand. Tobacco Control, 24(3), 285-289. doi:10.1136/tobaccocontrol-2013-051010en
dc.identifier.issn0964-4563en
dc.identifier.urihttps://hdl.handle.net/10182/7222
dc.description.abstractBackground Price-based mechanisms are an important tobacco cessation policy tool in New Zealand (NZ) and so measurement of smokers’ reaction to price changes is crucial in determining efficacy of this approach. Although approximately two-thirds of NZ tobacco demand is for manufactured cigarettes (MC) and one-third is for Roll-Your-Own (RYO) tobacco, previous price elasticity estimates have ignored differences between RYO tobacco and MC consumers. Methods We employ a seemingly unrelated regression econometric approach applied to quarterly data over the period 1991–2011 to estimate price elasticities of demand separately for MC and RYO tobacco. Results Estimate of price elasticity of demand for MC is −1.033, and −0.441 for RYO tobacco. RYO tobacco is an inferior good; a 1% increase in average weekly income is associated with a 0.8% reduction in demand. RYO tobacco is a substitute for MC; a 1% increase in the price of MC is associated with a 0.867% increase in demand for RYO tobacco. Conclusions There is significantly different price responsiveness across the two tobacco product types. MC smokers react far more strongly to price increases compared with RYO tobacco smokers. These findings suggest that pricing mechanisms may be more effective for reducing MC demand than for RYO tobacco. However, substitution between products means that this pricing effect is muted by the uptake of RYO tobacco use. Cessation policy specific to RYO use should be designed to target this growing group.en
dc.format.extent285-289en
dc.language.isoenen
dc.publisherBMJ Publishing Group Ltd.en
dc.relationThe original publication is available from - BMJ Publishing Group Ltd. - https://doi.org/10.1136/tobaccocontrol-2013-051010en
dc.relation.urihttps://doi.org/10.1136/tobaccocontrol-2013-051010en
dc.rightsCopyright © 2016 by the BMJ Publishing Group Ltd. All rights reserveden
dc.subjecteconomicsen
dc.subjectend gameen
dc.subjectpriceen
dc.subjecttaxationen
dc.subjectsmokingen
dc.subjectPublic Healthen
dc.subject.meshHumansen
dc.subject.meshModels, Econometricen
dc.subject.meshSmoking Cessationen
dc.subject.meshCommerceen
dc.subject.meshNew Zealanden
dc.subject.meshTobacco Productsen
dc.subject.meshConsumer Behavioren
dc.titleDo consumers of manufactured cigarettes respond differently to price changes compared with their roll-your-own counterparts? Evidence from New Zealanden
dc.typeJournal Article
lu.contributor.unitLincoln Universityen
lu.contributor.unitAgribusiness and Economics Research Uniten
dc.identifier.doi10.1136/tobaccocontrol-2013-051010en
dc.subject.anzsrc150507 Pricing (incl. Consumer Value Estimation)en
dc.relation.isPartOfTobacco Controlen
pubs.issue3en
pubs.organisational-group/LU
pubs.organisational-group/LU/Agribusiness & Economics Research Unit
pubs.organisational-group/LU/Research Management Office
pubs.organisational-group/LU/Research Management Office/QE18
pubs.publication-statusPublisheden
pubs.volume24en
dc.identifier.eissn1468-3318en
lu.identifier.orcid0000-0001-6394-4947
lu.identifier.orcid0000-0003-1597-7511


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