Research PapersNo Access

THE EFFECTS OF TAX CHANGES ON TOBACCO CONSUMPTION IN THAILAND

BIRD CHONVIHARNPAN

Faculty of Business, Government and Law, University of Canberra, ACT 2601, Australia

E-mail Address: bird.chonviharnpan@canberra.edu.au

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and

PHIL LEWIS

Centre for Labour Market Research, University of Canberra, ACT 2601, Australia

E-mail Address: phil.lewis@canberra.edu.au

Corresponding author.

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https://doi.org/10.1142/S0217590815500848Cited by:0 (Source: Crossref)

Abstract

The purpose of this study is to examine the factors affecting the likelihood of consuming and the amount spent on tobacco in Thailand. Heckman’s sample selection model is applied to data from the 2009 socio-economic survey of Thailand in order to determine the factors determining the decision to consume tobacco. Demand elasticities are then calculated using the Extended Linear Expenditure System (ELES). Age, household size, gender, occupation and tenure are found to be common factors that influence both the probability of tobacco smoking and expenditure on tobacco products. Income also plays a key roles in explaining the amount spent on tobacco. Demand for tobacco is found to be inelastic for Thai smokers.

Keywords:

JEL Classification: D12

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