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Aggregate cigarette demand and regional differences in China

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Abstract:

National educational level, final consumption expenditure, average propensity to cigarette consumption (APCC) and cigarette price are adopted to research the regional and national aggregate cigarette demand of China. Under the condition that the effects of anti-smoking education in the Chinese current educational system are not remarkable, the theoretical model shows that cigarette demand will increase with the increase of national educational level. Empirical analysis points out that cigarette demand increases with the increase of educational level. Estimates also suggest that cigarette price, consumption expenditure and APCC will affect cigarette demand significantly, and that there are great differences for cigarette demand by region.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840500358640

Affiliations: 1: Department of Production Management, China Tobacco Chuanyu Industrial Corporation, 86, Hongxing Road, Chengdu, Sichuan Province, 610017, China 2: Commercial and Management College, Chongqing University, Chongqing, 400044, China

Publication date: December 10, 2005

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