Quality and quantity of price elasticity of cigarette in Iran.

Homaie Rad, E; Pulok, MH; Rezaei, S; Reihanian, A

Quality and quantity of price elasticity of cigarette in Iran.

Homaie Rad, E Pulok, MH Rezaei, S Reihanian, A

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Publisher:: WILEY
Publication Type:: Journal Article
Citation:: The International journal of health planning and management, 2021, 36, (1), pp. 60-70
Issue Date:: 2021-01

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Field	Value	Language
dc.contributor.author	Homaie Rad, E
dc.contributor.author	Pulok, MH
dc.contributor.author	Rezaei, S
dc.contributor.author	Reihanian, A
dc.date.accessioned	2021-11-22T21:45:06Z
dc.date.available	2020-08-13
dc.date.available	2021-11-22T21:45:06Z
dc.date.issued	2021-01
dc.identifier.citation	The International journal of health planning and management, 2021, 36, (1), pp. 60-70
dc.identifier.issn	0749-6753
dc.identifier.issn	1099-1751
dc.identifier.uri	http://hdl.handle.net/10453/151786
dc.description.abstract	<h4>Objective</h4>Effectiveness of tax policies to control cigarette consumption largely depends on the sensitivity of cigarette demand due to price change. Price elasticity is the measurement of this responsiveness. The main objective of this study is to measure quantity, and quality price elasticity of demand (PED) and cross-price elasticity of demand (XED) for Iranian and non-Iranian cigarette brands in Iran.<h4>Methods</h4>This study used data from the 2017 Iranian household income and expenditures survey conducted in all 31 provinces of Iran. A total of 39,864 households were included in the survey. PED of quantity and quality and XED were estimated using restricted, unrestricted and quintile regression models.<h4>Results</h4>Our results s show that the Iranian and non-Iranians brands cigarettes were price inelastic and elastic, respectively. XED between Iranian and non-Iranian brands was positive suggesting households' preference for Iranian brands of cigarettes over non-Iranian brands. Quintile regression results suggest that PED varied between -1.20 and -0.91 across the distribution of quantity demanded.<h4>Conclusion</h4>Imposing tax could be a useful policy tool to control smoking initiation and intensity in Iran. However, the effectiveness of such policy would depend on the better governance of taxation imposed on different brands of cigarettes.
dc.format	Print-Electronic
dc.language	eng
dc.publisher	WILEY
dc.relation.ispartof	The International journal of health planning and management
dc.relation.isbasedon	10.1002/hpm.3062
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1117 Public Health and Health Services, 1605 Policy and Administration
dc.subject.classification	Health Policy & Services
dc.subject.mesh	Elasticity
dc.subject.mesh	Commerce
dc.subject.mesh	Taxes
dc.subject.mesh	Iran
dc.subject.mesh	Tobacco Products
dc.subject.mesh	Commerce
dc.subject.mesh	Elasticity
dc.subject.mesh	Iran
dc.subject.mesh	Taxes
dc.subject.mesh	Tobacco Products
dc.title	Quality and quantity of price elasticity of cigarette in Iran.
dc.type	Journal Article
utslib.citation.volume	36
utslib.location.activity	England
utslib.for	1117 Public Health and Health Services
utslib.for	1605 Policy and Administration
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/DVC (International)
utslib.copyright.status	closed_access	*
dc.date.updated	2021-11-22T21:45:05Z
pubs.issue	1
pubs.publication-status	Published
pubs.volume	36
utslib.citation.issue	1

Abstract:

Objective

Effectiveness of tax policies to control cigarette consumption largely depends on the sensitivity of cigarette demand due to price change. Price elasticity is the measurement of this responsiveness. The main objective of this study is to measure quantity, and quality price elasticity of demand (PED) and cross-price elasticity of demand (XED) for Iranian and non-Iranian cigarette brands in Iran.

Methods

This study used data from the 2017 Iranian household income and expenditures survey conducted in all 31 provinces of Iran. A total of 39,864 households were included in the survey. PED of quantity and quality and XED were estimated using restricted, unrestricted and quintile regression models.

Results

Our results s show that the Iranian and non-Iranians brands cigarettes were price inelastic and elastic, respectively. XED between Iranian and non-Iranian brands was positive suggesting households' preference for Iranian brands of cigarettes over non-Iranian brands. Quintile regression results suggest that PED varied between -1.20 and -0.91 across the distribution of quantity demanded.

Conclusion

Imposing tax could be a useful policy tool to control smoking initiation and intensity in Iran. However, the effectiveness of such policy would depend on the better governance of taxation imposed on different brands of cigarettes.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/151786