The effects of advertising restrictions on cigarette prices: evidence fromOECD countries

This paper investigates the effects of cigarette advertising restrictions o n the price of cigarettes in OECD countries. Using data from 1964 through 1 990, we fmd that outright proscription of advertising does not influence th e price of cigarettes. On the other hand, restrictions placed on advertisin g actually reduce the price of cigarettes. The results reinforce those of S tewart (International Journal of Advertising, 12, 1993) and suggest that pu blic policy directed at cigarette advertising may not be a good vehicle to dissuade cigarette consumption.