Tobacco Price Elasticity and Tax Progressivity in Moldova

The study estimates the tobacco price elasticity of demand for the population of Moldova, and the price elasticity for 10 income groups is obtained. This appears to be the first tobacco price elasticity estimation for income groups in Moldova. The...

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Bibliographic Details
Main Authors: Fuchs, Alan, Meneses, Francisco
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2018
Subjects:
Online Access:http://documents.worldbank.org/curated/en/924021517562834920/Tobacco-price-elasticity-and-tax-progressivity-in-Moldova
http://hdl.handle.net/10986/29329
Description
Summary:The study estimates the tobacco price elasticity of demand for the population of Moldova, and the price elasticity for 10 income groups is obtained. This appears to be the first tobacco price elasticity estimation for income groups in Moldova. The study undertakes an extended cost-benefit analysis to estimate the distributional effect of a rise in tobacco taxes on income distribution. As inputs, it uses tobacco price elasticity, mortality attributed to tobacco, and the medical costs of tobacco-attributed diseases.