Publication Date

April 2010

Advisor(s)

Joyce Jacobsen

Major

Economics (ECON)

Language

English (United States)

Abstract

Cigarette taxes and regulations have historically been used by governments to raise revenues and more recently discourage the habit of smoking. In the past year alone, the United States government increased the federal tax rate on a pack of cigarettes by 62 cents (the largest increase in history of the U.S. federal tax rate on cigarettes), and the government of Greece has chosen to increase the tax on cigarettes to help offset its current debt crisis. This thesis will attempt to provide an explanation for why cigarettes have become such a popular commodity for government regulation, as well as the economic theories behind these decisions. This paper will also attempt to quantify the economic effects of cigarette regulation using econometric techniques to determine whether these theories hold in reality.

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