The elasticity of tobacco products in BiH – macrodata analysis
Tobacco consumption continues to be behavior engaged in by a large percentage of Bosnia & Herzegovina (BiH) citizens. According to the official statistics, nearly half of the state’s adults, that is about 1,200,600 people, consume tobacco product on a daily bases. The state excise policy is one...
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
European Publishing
2019-03-01
|
| Series: | Tobacco Prevention and Cessation |
| Subjects: | |
| Online Access: | https://www.tobaccopreventioncessation.com/The-elasticity-of-tobacco-products-in-BiH-macrodata-analysis,105226,0,2.html |
| _version_ | 1797337985797062656 |
|---|---|
| author | Dragan Gligoric Sasa Petkovic Andjela Pepic Jovo Ateljevic Borislav Vukojevic |
| author_facet | Dragan Gligoric Sasa Petkovic Andjela Pepic Jovo Ateljevic Borislav Vukojevic |
| author_sort | Dragan Gligoric |
| collection | DOAJ |
| description | Tobacco consumption continues to be behavior engaged in by a large percentage of Bosnia & Herzegovina (BiH) citizens. According to the official statistics, nearly half of the state’s adults, that is about 1,200,600 people, consume tobacco product on a daily bases. The state excise policy is one of the main available tool for reducing smoking prevalence because the cigarette prices are under direct impact of this policy. The specific excise on cigarettes introduced in BiH in 2009 and have increased every year so it was the main driver of cigarettes price growth. In order to provide research-based evidence for more effective tobacco taxation policies in BIH, in this paper we estimate the price elasticity of demand for cigarettes using the macro level data for the period 2008 to 2017, on a semi-annual basis. The results have shown that increase in prices of cigarettes have statistically significant impact on cigarettes consumption, at a significance level of 1%. The estimated price elasticity coefficient is in the range from -0.71 to -0.83, depends on the selected control variables used in the model. It means that increase in real cigarettes prices for 10% led to the decrease in cigarettes consumption in the range from 7.1% to 8.3%. Results of our analysis suggest that the state excise policy is an effective tool for reducing smoking prevalence in BiH. If policy-makers in BiH continue with the policy of increasing excise taxes, the consumption of cigarettes will decrease. |
| first_indexed | 2024-03-08T09:24:31Z |
| format | Article |
| id | doaj.art-ef42fcf8b4b744a39afb6d280ae5abaa |
| institution | Directory Open Access Journal |
| issn | 2459-3087 |
| language | English |
| last_indexed | 2024-03-08T09:24:31Z |
| publishDate | 2019-03-01 |
| publisher | European Publishing |
| record_format | Article |
| series | Tobacco Prevention and Cessation |
| spelling | doaj.art-ef42fcf8b4b744a39afb6d280ae5abaa2024-01-31T10:30:36ZengEuropean PublishingTobacco Prevention and Cessation2459-30872019-03-015Supplement10.18332/tpc/105226105226The elasticity of tobacco products in BiH – macrodata analysisDragan Gligoric0Sasa Petkovic1Andjela Pepic2Jovo Ateljevic3Borislav Vukojevic4University of Banja Luka, Bosnia and HerzegovinaUniversity of Banja Luka, Bosnia and HerzegovinaUniversity of Banja Luka, Bosnia and HerzegovinaUniversity of Banja Luka, Bosnia and HerzegovinaUniversity of Banja Luka, Bosnia and HerzegovinaTobacco consumption continues to be behavior engaged in by a large percentage of Bosnia & Herzegovina (BiH) citizens. According to the official statistics, nearly half of the state’s adults, that is about 1,200,600 people, consume tobacco product on a daily bases. The state excise policy is one of the main available tool for reducing smoking prevalence because the cigarette prices are under direct impact of this policy. The specific excise on cigarettes introduced in BiH in 2009 and have increased every year so it was the main driver of cigarettes price growth. In order to provide research-based evidence for more effective tobacco taxation policies in BIH, in this paper we estimate the price elasticity of demand for cigarettes using the macro level data for the period 2008 to 2017, on a semi-annual basis. The results have shown that increase in prices of cigarettes have statistically significant impact on cigarettes consumption, at a significance level of 1%. The estimated price elasticity coefficient is in the range from -0.71 to -0.83, depends on the selected control variables used in the model. It means that increase in real cigarettes prices for 10% led to the decrease in cigarettes consumption in the range from 7.1% to 8.3%. Results of our analysis suggest that the state excise policy is an effective tool for reducing smoking prevalence in BiH. If policy-makers in BiH continue with the policy of increasing excise taxes, the consumption of cigarettes will decrease.https://www.tobaccopreventioncessation.com/The-elasticity-of-tobacco-products-in-BiH-macrodata-analysis,105226,0,2.htmltobacco consumption |
| spellingShingle | Dragan Gligoric Sasa Petkovic Andjela Pepic Jovo Ateljevic Borislav Vukojevic The elasticity of tobacco products in BiH – macrodata analysis Tobacco Prevention and Cessation tobacco consumption |
| title | The elasticity of tobacco products in BiH – macrodata analysis |
| title_full | The elasticity of tobacco products in BiH – macrodata analysis |
| title_fullStr | The elasticity of tobacco products in BiH – macrodata analysis |
| title_full_unstemmed | The elasticity of tobacco products in BiH – macrodata analysis |
| title_short | The elasticity of tobacco products in BiH – macrodata analysis |
| title_sort | elasticity of tobacco products in bih macrodata analysis |
| topic | tobacco consumption |
| url | https://www.tobaccopreventioncessation.com/The-elasticity-of-tobacco-products-in-BiH-macrodata-analysis,105226,0,2.html |
| work_keys_str_mv | AT dragangligoric theelasticityoftobaccoproductsinbihmacrodataanalysis AT sasapetkovic theelasticityoftobaccoproductsinbihmacrodataanalysis AT andjelapepic theelasticityoftobaccoproductsinbihmacrodataanalysis AT jovoateljevic theelasticityoftobaccoproductsinbihmacrodataanalysis AT borislavvukojevic theelasticityoftobaccoproductsinbihmacrodataanalysis AT dragangligoric elasticityoftobaccoproductsinbihmacrodataanalysis AT sasapetkovic elasticityoftobaccoproductsinbihmacrodataanalysis AT andjelapepic elasticityoftobaccoproductsinbihmacrodataanalysis AT jovoateljevic elasticityoftobaccoproductsinbihmacrodataanalysis AT borislavvukojevic elasticityoftobaccoproductsinbihmacrodataanalysis |