Please use this identifier to cite or link to this item: https://hdl.handle.net/10356/139123
Title: The effectiveness of tobacco taxation on university students : an empirical study on Singapore’s February 2018 tax hike
Authors: Lim, Eugenia Hui Jie
Wong, Priya Wan Qi
Theng, Alicia Cui Mei
Keywords: Social sciences::Economic theory::Microeconomics
Issue Date: 2020
Publisher: Nanyang Technological University
Abstract: Taxes are part of Singapore’s multi-pronged approach in curbing cigarette consumption. Becker and Murphy’s Rational Addiction Model implied that taxes are effective in curbing cigarette consumption among younger individuals. This paper seeks to test the empirical validity of this implication on university students in Singapore by examining Singapore’s February 2018 tobacco tax hike. Multinomial logistic regression was conducted and subsequently found that at a 1% significance level, the average probability of an individual decreasing his cigarette consumption increases by 35.2% when faced with a tax hike. This shows that the increase in tax was effective in decreasing cigarette consumption among university students. Robustness checks confirmed the consistency of tax in our model. The results obtained highlight potential policy implications for the Singapore government to decrease smoking prevalence among university students.
URI: https://hdl.handle.net/10356/139123
Fulltext Permission: restricted
Fulltext Availability: With Fulltext
Appears in Collections:SSS Student Reports (FYP/IA/PA/PI)

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