Curbing the Epidemic: Governments and the Economics of by Jha P., Chaloupka F.J.

By Jha P., Chaloupka F.J.

Addresses the commercial and social concerns that confront policymakers while facing tobacco regulate, and the impression of tobacco keep watch over rules on economies. issues lined within the publication contain wellbeing and fitness elements, financial fears, and the influence on economies and contributors.

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Additional resources for Curbing the Epidemic: Governments and the Economics of Tobacco Control

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Cape Town,South Africa: Applied Fiscal Research Centre, University of Cape Town. MEASURESTO REDUCETHE DEMAND FOR TOBACCO 41 price increases make varying assumptions about whether smokers look ahead at the consequences of their actions or not. However, all models agree that, for an addictive substance such as nicotine, an individual's current consumption levels will be determined by his or her past consumption levels as well as by the current price of the good. This relationship between past consumption and current consumption has important implications for modeling the impact of price rises on demand for tobacco.

Ideally, government interventions should address each identified problem with a specific intervention. However, this is not always possible and some interventions may have broader effects. Thus, for example, children's and adolescents' imperfect judgments about the health effects of smoking would most specifically be addressed by improving their education about those effects, and by improving their parents' education. However, in reality, children respond poorly to health education and parents are imperfect agents, not always acting in their children's best interests.

Few doubt that smokers impose physical costs on nonsmokers who are obliged to inhale their smoke, with the MEASURES TO REDUCE THE DEMAND FOR TOBACCO 45 biggest burden of passive smoking borne by the children and spouses of smokers. Yet, since some economists consider the family to be the basic decisionmaking unit in society, they regard spouses' and children's exposure to tobacco smoke as an internal cost that is taken into account in the family's decisions about smoking, rather than an external cost imposed by smokers on others.

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