| By: |
Junmin Wan (Osaka School of International Public Policy, Osaka University) |
| Abstract: |
I estimated inter-brand cigarette demands with nicotine, tar content and
policy event information in Japan during 1950-84. The demand for all brands
increased but the demand for plain (non-filter) brands decreased due to the
dissemination ofgA Note about Health Damage from Smoking h in 1964. The demand
for all brands increased but the demand for high-nicotine brands decreased due
to the disclosure of nicotine and tar content in 1967 and the labeling
warnings in 1972, however consumers had still preferred high-nicotine brands
after 1972. Contrastively, the demand for high-tar brands increased in 1967
but decreased in 1972, and consumers had switched to prefer low-tar brands
after 1972. Disclosure did not reduce the intake of nicotine but reduced the
intake of tar, accordingly disclosure may benefit consumers by reducing the
health risk as tar causes cancers. In line with changes in inter-brand
demands, the monopolistic firm discontinued old products with poorer quality
(plain, high-tar) but provided new better ones (filter-tipped, low-tar). |
| Keywords: |
disclosure, nicotine, tar, cigarette, inter-brand, panel estimation, difference in difference |
| JEL: |
I18 D12 D82 |
| Date: |
2004–06 |
| URL: |
http://d.repec.org/n?u=RePEc:osk:wpaper:0413r&r=agr |