Aggregate Analysis of the Impact of Cigarette Tax Rate Increases on Tobacco Consumption and Government Revenue : The Case of Indonesia

dc.creatorDjutaharta, Triasih
dc.creatorViriya Surya, Henry
dc.creatorPasay, N. Haidy A.
dc.creatorHendratno
dc.creatorAdioetomo, Sri Moertiningsih
dc.date2013-06-04T21:19:32Z
dc.date2013-06-04T21:19:32Z
dc.date2005-01
dc.date.accessioned2026-07-01T01:25:24Z
dc.descriptionThis study uses aggregate times series data (annual data from 1970-2001) and monthly data from January 1996 to June 2001 to estimate the price and income elasticity of demand for tobacco products in Indonesia. Using various model specifications used in the cigarette demand literature, and then selecting the best model, it estimates the real price elasticity of cigarette demand as -0.345 and income elasticity of demand as 0.473. This inplies that a 10 percent real price increase would reduce consumption by 3.4 percent, and a 10 percent real income increase would raise consumption by 4.7 percent. The economic crisis after 1997 was found to increase consumption, over and above the effects of price and income, and the warning label on cigarette packs required after 1991 appears to have no significant impact on demand. Estimates based on the shorter period of monthly data showed less responsiveness to price and incomes, as would be expected. The study simulates the effects of a tax increase on total tobacco excise revenues and predicts that an increase in the tax level of 10, 50, or 100 percent would increase total tax revenue by 9 percent, 43 percent, and 82 percent respectively. The study comments on the effect of possible switching to cheaper products or illegal purchases.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/2005/01/5701718/aggregate-analysis-impact-cigarette-tax-rate-increases-tobacco-consumption-government-revenue-case-indonesia
dc.identifierhttps://hdl.handle.net/10986/13758
dc.identifierhttps://doi.org/10.1596/13758
dc.identifier.urihttp://hdl.handle.net/123456789/417954
dc.languageEnglish
dc.languageen_US
dc.publisherWorld Bank, Washington, DC
dc.relationHealth, Nutrition and Population (HNP) discussion paper;
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectADOLESCENTS
dc.subjectADULTS
dc.subjectADVERTISING
dc.subjectAGED
dc.subjectAGGREGATE ANALYSIS
dc.subjectAGGREGATE DEMAND
dc.subjectALCOHOL
dc.subjectASTHMA
dc.subjectBURDEN OF DISEASE
dc.subjectCARBON
dc.subjectCITIES
dc.subjectCONSUMER PRICE INDEX
dc.subjectCONSUMERS
dc.subjectDAMAGES
dc.subjectDISEASE CONTROL
dc.subjectDISEASES
dc.subjectECONOMIC IMPACT
dc.subjectELASTICITY
dc.subjectEPIDEMIOLOGY
dc.subjectEXCISE TAXES
dc.subjectEXPENDITURES
dc.subjectEXPORTS
dc.subjectFORESTRY
dc.subjectGDP
dc.subjectGDP DEFLATOR
dc.subjectGDP PER CAPITA
dc.subjectGNP
dc.subjectGOVERNMENT REGULATION
dc.subjectGOVERNMENT REGULATIONS
dc.subjectGROSS NATIONAL PRODUCT
dc.subjectHIS/HER
dc.subjectHOSPITALS
dc.subjectHUMAN DEVELOPMENT
dc.subjectIMPORTS
dc.subjectIMPOTENCE
dc.subjectINCOME
dc.subjectINCOME ELASTICITY OF DEMAND
dc.subjectINFERTILITY
dc.subjectINTERVENTION
dc.subjectLUNG CANCER
dc.subjectMARKET FACTORS
dc.subjectMEDIA
dc.subjectNATIONAL INCOME
dc.subjectNUTRITION
dc.subjectPARTNERSHIP
dc.subjectPASSIVE SMOKING
dc.subjectPER CAPITA INCOME
dc.subjectPOLICY MAKERS
dc.subjectPREGNANCY
dc.subjectPREMATURE DEATH
dc.subjectPRICE CHANGES
dc.subjectPRICE ELASTICITY
dc.subjectPRICE ELASTICITY OF DEMAND
dc.subjectPRICE INCREASES
dc.subjectPRODUCERS
dc.subjectPUBLIC HEALTH
dc.subjectPURCHASING POWER
dc.subjectREAL GDP
dc.subjectREAL INCOME
dc.subjectREPRODUCTIVE HEALTH
dc.subjectSCHOOLS
dc.subjectSMOKERS
dc.subjectSMOKING
dc.subjectSTD
dc.subjectTAX
dc.subjectTAX REVENUE
dc.subjectTAX REVENUES
dc.subjectTAXATION
dc.subjectTELECOMMUNICATIONS
dc.subjectTIME SERIES
dc.subjectTOBACCO
dc.subjectTOBACCO CONTROL
dc.subjectTOBACCO USE
dc.subjectTOTAL REVENUE
dc.subjectUTILITY MAXIMIZATION
dc.titleAggregate Analysis of the Impact of Cigarette Tax Rate Increases on Tobacco Consumption and Government Revenue : The Case of Indonesia

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