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- Title
The Impact of the Master Settlement Agreement on Cigarette Consumption.
- Authors
Sloan, Frank A.; Trogdon, Justin G.
- Abstract
In November 1998, 46 states and the four major tobacco companies entered into the Master Settlement Agreement (MSA), which settled litigation brought on behalf of states in order to recover medical expenses paid by government insurance agencies for illness brought on by consumption of tobacco products. The MSA stipulated that the tobacco companies pay states $206 billion over the next 25 years. The tobacco companies were also to implement provisions to reduce youth smoking. The MSA was specifically designed to considerably deter the demand for tobacco products, specifically cigarettes. The four remaining states, Florida, Minnesota, Mississippi and Texas settled separately with the tobacco companies. These settlements affected smoking primarily through price increases for cigarettes, although there was evidence that other policy instruments influenced smoking rates for younger smokers. By 2002, these settlements had reduced overall smoking rates by 13 percent for ages 18 to 20 and older than 65 and 5 percent for ages 21 to 64. Most of the effect of settlements came through the associated retail price increases for cigarettes. The remaining effect reflects changes in tobacco control policies other than state excise tax increases that may have been affected in preferences.
- Subjects
TOBACCO; ACTIONS &; defenses (Law); CONSUMPTION (Economics); CIGARETTES; SMOKING; INSURANCE; PRICES
- Publication
Journal of Policy Analysis & Management, 2004, Vol 23, Issue 4, p843
- ISSN
0276-8739
- Publication type
Article
- DOI
10.1002/pam.20050