THE DEMAND FOR CIGARETTES IN CALIFORNIA AND BEHAVIORAL RISK-FACTORS

This study contributes to the understanding of the demand for cigarett es by taking into account the interdependence of smoking and other beh avioural risk factors. Information on smoking and other behavioural ri sk factors including drinking, alcohol use, and obesity were obtained from the California Behavioural Risk Factor Survey for the period 1985 -91. A monthly cigarette price index for California was constructed ba sed on data obtained from the Bureau of Labor Statistics. A two-part m odel was used to examine separately the effect of price on the decisio n to be a smoker, and on the amount of cigarettes smoked by smokers. T he overall price elasticity of cigarettes was estimated at -0.46, with a price elasticity of -0.33 for smoking participation and of -0.22 fo r the amount of cigarettes consumed by smokers. The inclusion of other behavioural risk factors reduced the estimated price elasticity for s moking participation substantially, but had no effect on the condition al price elasticity for the quantity of cigarettes smoked.