Policy implications of alcohol and tobacco demand in Poland
Publication Source

Journal of Policy Modeling

Journal article
Economy status
High-income economies
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Demand models for alcohol and tobacco have been estimated from annual data providing point elasticity estimates. The results indicate that vodka and tobacco consumption are price-inelastic.

The importance of revenues from alcohol and tobacco to the government budget was emphasized because of a chronic budget deficit. The results suggest that revenue from tobacco sales would increase following cigarette price increases. However, the long-run solution should lead to increased economic activity that lowers the importance of alcohol and tobacco sales and achieve a socially desired decrease in consumption of alcohol and tobacco.