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Clean indoor air laws, addiction and cigarette smoking ABSTRACT Cigarette
demand equations, derived from the Becker and Murphy (1988)
model of rational addiction are estimated which include
alternative measures of state level clean indoor air laws.
The laws have been the most widely used tool in the recent
years of the anti-smoking campaign. Survey data taken from
the Second National Health and Nutrition Examination Survey,
augmented with county level cigarette prices and excise
taxes and state level measures of restrictions on smoking,
are used to estimate the demand equations. Clean indoor air
laws are found to have a significant negative impact on
average cigarette consumption. Increased restrictiveness of
these laws, beyond some basic level, however, is not found
to further reduce smoking. The effects of these restrictions
are found to differ across sexes. Average consumption among
men is significantly reduced by the passage of the laws,
whereas smoking among women is unaffected. Finally,
cigarette prices are found to have a significant negative
impact on consumption, with the impact of price limited to
men.
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