Search This Blog

Monday, April 30, 2007

IN approves 44 cents increase in cigarette tax

Prices of a pack of cigs vary of course in IN, but let's make the reasonable assumption that a pack on average costs $3.60. Let's also assume elasticity of demand for cigs in inelastic (but not terribly so) is around -.3 (which is also reasonable given research). That means a 44 cent tax hike would reduce consumption of cigs by about 3.6% - not much, but better than nothing.


Joye 510 said...

Now I've talked with Sam before, and he was real, unassuming, and very cordial

Clip-ons said...

In the history of boasts about sexual bravado, that one doesn't rank so highly in the memorable quotes chapter.