Are Chinese smokers sensitive to price?
Publication Source
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China Economic Review
Journal article
Metadata
Region
Western Pacific
Economy status
Upper-middle-income economies
Abstract
We estimate cigarette price and income elasticities for urban China, 1995. We find an overall cigarette price elasticity of 0.5, which lies between previous estimates. This implies that a 10% increase in price would result in a decline in cigarette consumption of 4.5 billion packs and would raise Y34 billion in additional tax revenue.