| lcohol and tobacco use are related to sizeable human and economic costs in the U.S., and raising prices through taxation is a widespread strategy used by governments to reduce their use. From a policy perspective it is important to know whether increasing cigarette prices might impact alcohol use--known in economics as a 'cross-price effect.' In addition, it is important to understand whether cross-price effects vary by sex, age, poverty status, and race/ethnicity, an under-studied area of research.;The aims of this study are to examine the effects of changes in state cigarette price on participation in smoking and in current, binge, and heavy drinking. Subsequently, it explores whether the results vary by sex, age, poverty status, and race/ethnicity.;The research is guided by the economic theory of consumer demand which assists in modeling and in providing a framework for explaining the main own- and cross-price effects. In addition, social ecological theory provides guidance for understanding potential differences in demand response by sex, age, poverty status, and race/ethnicity.;Pooled cross sectional analyses of the Behavioral Risk Factor Surveillance System (BRFSS) surveys from 2001-2006 are conducted. The final sample represents 1,323,758 independent observations. Policy variables are merged into the pooled BRFSS dataset. A series of multivariate equations are estimated that incorporate state and year fixed effects to control for potential unobserved state-level characteristics that may influence smoking and drinking. Logistic regression is used for the main analyses to address the binary nature of the dependent variables, and Linear Probability Models (LPM) are used for analyses by demographic group. All data are weighted.;Results did not find a significant relationship between the state price of cigarettes and participation in current smoking, or in current, binge, or heavy drinking. However, these main results were found to mask significant differences between demographic groups and across patterns of smoking and drinking. This study provides alarming evidence that a... |
