Is cigarette smoking in poorer nations highly sensitive to price? Evidence from Russia and China

J Health Econ. 2004 Jan;23(1):173-89. doi: 10.1016/j.jhealeco.2003.09.004.


We examine cigarette demand in China and Russia using longitudinal micro-level household and community surveys. Previous developing-country price elasticity estimates of around -0.75 have been larger than United States estimates of about -0.4, but the former have relied primarily on aggregate data. In contrast, our micro-level price elasticity estimates in China and Russia range from 0 to -0.15. Thus, raising prices in poorer countries may not reduce smoking to the degree previously suggested.

Publication types

  • Research Support, U.S. Gov't, P.H.S.

MeSH terms

  • Adult
  • China / epidemiology
  • Consumer Behavior / economics*
  • Family Characteristics
  • Fees and Charges / trends*
  • Female
  • Humans
  • Inflation, Economic
  • Longitudinal Studies
  • Male
  • Middle Aged
  • Models, Econometric
  • Russia / epidemiology
  • Smoking / economics*
  • Smoking / epidemiology*