Teen drinkers are over twice as Likely as abstainers to smoke cigarettes. T
his empirical study provides evidence of a robust complementarity between t
hese health behaviors by exploiting the "cross-price" effects. The results
indicate that the movement away from minimum legal drinking ages of 18 redu
ced teen smoking participation by 3 to 5%. The corresponding instrumental v
ariable estimates suggest that teen drinking roughly doubles the mean proba
bility of smoking participation. Similarly, higher cigarette taxes and redu
ctions in teen smoking are associated with a lower prevalence of teen drink
ing. However, the results which rely on cigarette taxes for identification
are estimated imprecisely. (C) 1999 Elsevier Science B.V. All rights reserv
ed.