Cigarette consumption in Greece: Empirical evidence from cointegration analysis

Listed in:

• Tax and price in HICs
• Aggregate demand for tobacco products

Abstract

This paper provides an empirical analysis of cigarette consumption in Greece using the recent Johansen cointegration procedure for the period 1960–1990. Income and price elasticities for the long-run and short-run period are estimated. In addition the findings suggest that health warnings in consumption are more effective in reducing smoking than an increase in the price.