In:
Journal of Agricultural and Applied Economics, Cambridge University Press (CUP), Vol. 45, No. 3 ( 2013-08), p. 411-419
Abstract:
This article analyzes the impact of removing the U.S. tobacco program in both a partial and general welfare economics framework. In a partial-equilibrium framework, a consumer tax-funded quota buyout can result in producer gains, consumer losses, net losses resulting from higher prices, and deadweight losses. In a general-equilibrium framework, society can gain from the buyout resulting from considerable potential savings from reduced healthcare costs attributable to a reduction in smoking. Additionally, we present a model that addresses the addictive qualities of tobacco while considering the effects of the quota buyout. We also conclude that another possible effect of the buyout is an increase in worker productivity because employees who are able to quit smoking reduce the amount of smoking-related sick days taken.
Type of Medium:
Online Resource
ISSN:
1074-0708
,
2056-7405
DOI:
10.1017/S1074070800004946
Language:
English
Publisher:
Cambridge University Press (CUP)
Publication Date:
2013
detail.hit.zdb_id:
2141115-3
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