Douglas Coate

The potential for using excise taxes to reduce smoking

We examine the potential for reducing cigarette smoking through increases in cigarette excise taxes by estimating the price elasticity of demand for cigarettes. Using information on individual smoking behavior from the 1976 Health Interview Survey, we estimate the adult price elasticity of demand for cigarettes to be -0.42. We find that price has its greatest effect on the smoking behavior of young males and that it operates primarily on the decision to smoke rather than via adjustments in the quantity of cigarettes smoked. An excise tax increase would discourage smoking by successive cohorts of young adults, and those reduced smoking levels would be reflected in aggregate smoking as these cohorts mature.

The Choice of Diet for Young Children and Its Relation to Children's Growth

In this paper we analyze the choice of diet for young children in low income families in the United States and its relation to the childrens growth. Our most important finding is that the education and income levels in low income households are generally sufficient for the provision of adequate diets for children in the household. This conclusion is based on empirical results which show that low income parents have pushed the growth of their children through choice of diet nearly as much as possible, and which also show that mothers education and family income are insignificant determinants of the nutrient intakes of children in low income households.

The Truth About Light Trucks: Despite Critics' Claims, Suvs are Saving Lives

To determine the relationship between light trucks and motor vehicle fatalities, we formulated a simultaneous equations model that considered the effect that light truck usage and other variables had on fatality rates over the period 1994 to 1997. We discovered that there is a negative relationship between light truck registration and the motor vehicle fatality rate in both single-vehicle and multiple-vehicle accidents. Our elasticity estimates indicate that the five-percent increase in light truck registrations in the United States over the time period 1994 to 1997 lowered single-vehicle fatalities per driver by 7.5 percent and multiple-vehicle fatalities per driver by two percent. These figures translate into about 2,000 lives saved.