Three essays on cigarette addiction, taxation and health.

摘要

This dissertation is composed of three papers that explore the politically optimal cigarette taxation in a lobbying model, intergovernmental relations in the setting of cigarette taxes and the effect of school quality on juvenile smoking behavior.; The first essay incorporates the concept of cigarette addiction and governmental corruption in the political process of cigarette taxation. The paper develops a lobbying model where the government selects the equilibrium cigarette tax rate to maximize a sum of the political contribution of the tobacco industry lobby group and the aggregate social welfare. The major findings are that the equilibrium cigarette tax is determined by the addiction level in society, the governmental corruption, and their interaction. Moreover, the effect of addiction on the equilibrium tax rate is conditional on the political pressure of the tobacco industry lobby group, the corruption of the policymakers as well as the political power of the smokers, nonsmokers and the revenue need.; The second essay examines the state governments' political response in cigarette excise tax rate to a change in the federal excise tax rate. A lobbying model is developed to explain the interdependence of federal and state cigarette excise tax rates. In the theoretical model, the states' response to federal tax changes depends on the pressures of tobacco and anti-smoking lobby groups as well as the political power of smokers and revenue need by states. Using a state-level panel data set from 1980 to 2001 comprising 48 contiguous US states, the paper finds that states reduce their cigarette excise tax rates by as much as 41 cents for a one dollar increase in the federal tax rate. The result is contrary to the findings of Besley and Rosen (1998), who found a positive response by the states.; The third essay is a pioneering work that details the effect of school quality on smoking behavior of young adults. While empirical evidence has linked prices, regulations and additional years of schooling to lower rates of smoking, no studies have analyzed the impact of school quality on smoking behavior. The Student-teacher ratio, school day length and teachers' salary are used as the measures of school quality on panel data of students from eighth grade through their mid-20s. School quality may directly affect youth smoking and drinking by affecting attitudes and expectations, impacting the quantity and quality of teachers, and altering the actual time students have to engage in such behaviors. Furthermore, school quality may indirectly affect participation in such activities in adulthood by influencing the total education obtained by individuals. The paper finds that longer school days reduce the probability that students smoke or binge drink, and that lower pupil-teacher ratios reduce adult smoking by raising completed education. (Abstract shortened by UMI.)