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A second distinct goal of cigarette taxation is to raise the price of cigarettes to consumers to a level that fully reflects the social cost generated by their consumption. The long termshort term differential is far from established as fact. There is some evidence of this kind of response when smokers switch to low tar and nicotine cigarettes. Cigarette taxes and justice A further question concerns whether there are considerations other than governmental interest that should help determine a fair and appropriate cigarette tax..

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discount And smoking experience groups can tell us much about the nature of price effects. Theories or projections are not acceptable substitutes for the empirical knowledge that analysis of real changes in cigarette prices can produce. Income, gender, the reaction of different age, ethnic. Comparative studies in high and low tax environments may help determine whether high prices affect the pattern of experimental smoking among young persons in ways that make cessation of smoking easier. The most important groups for smoking prevention and early career cessation effects have also been the least documented groups in studies of policies like taxes and prices..

Price elasticity and policy There is no obvious relationship between elasticity of demand and the extent to which taxation is a desirable cigarette policy. Then data on elasticity of demand tell observers how much reduction in the demand for cigarettes can be sale expected from achievable pricetax strategies. But efficiency of this kind is an unconvincing upper limit of justice in cigarette taxation. First, panel studies of smokers responses can estimate whether they account for most of the short and long term decline in cigarette sales or whether there is a large residual effect that is attributable to prevention in the short and long. If there are political limits that constrain the amount by which prices and taxes can rise..

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