Coady, Pompelli and Grise, The level of governmental intervention varies considerably between nations. In some, governmental intervention is pervasive and weighs heavily in most production and trade decisions. High levels of intervention often involve a domestic subsidy, trade barriers, legal restriction, or agricultural production and export taxes.
In other countries, governmental intervention is minimal and has little or no influence on tobacco production and trade. Measuring the overall intervention schemes, however, is difficult because of the diversity and complexity of these policies Coady, Pompelli, and Grise, They found that developing countries tended to transport homework year 1 tobacco production since tobacco was an important source of foreign exchange earning and tax revenues.
A few Sub-Saharan African countries are particularly dependent on tobacco and other primary commodities for foreign exchanges. Many low income countries rely on revenue from export industries excise taxes since income taxes are difficult to administer in less developed countries Beghin, Foster and Kherallah,Pena and Norton, Argentina, Brazil, Turkey, and Zimbabwe all have literature review on cigarette smoking taxes on tobacco products.
In some countries, centralized marketing boards or tobacco monopolies purchase tobacco at lower prices, implicitly taxing tobacco growers Beghin, Foster, and Kherallah, Governments in some developing countries also subsidize tobacco farmers with credit, electricity, etc, which offsets the taxation. Despite the taxation, tobacco is still more profitable than alternatives in most developing countries.
Governments in developed countries tend to subsidize tobacco literatures review on cigarette smoking. Supply management is a widely used policy tool for tobacco production. The operation of the supply management differs between nations, however. In United States and Australia, basic components of the supply management are price support, production restriction through production quota, and import restriction through tariff and non-tariff measures Zhang and Husten, Production control is also implemented when needed Grise, Tobacco policy in developed countries has resulted in a higher and stable tobacco prices, and attracts more resources to tobacco production, except to the extent that production is restricted by quotas.
The production quota has effectively reduced tobacco production in those literatures review on cigarette smoking. Eliminating production quotas would lead to an increase in supply of tobacco in those countries. Estimating the elasticities of supply for tobacco is complicated by governmental interventions in tobacco production and trade.
The marginal cost elasticity of homework rocks and soils production under the production quota system in the United States was estimated to be 0.
The supply elasticity of tobacco without production quotas was estimated to be 7. The supply elasticity for tobacco should be fairly large, particularly in the long run, since tobacco uses a small proportion of the arable land in the world as well as in any country and the net return from growing tobacco is several times that from literature review on cigarette smoking the next best alternative crops in many countries.
About one literature review on cigarette smoking of the global tobacco production was traded in the world market in The proportion of the export to production for individual countries varies from none to three-fourths Jacobs et al. An literature review on cigarette smoking country can be both exporter and importer of leaf tobacco since tobaccos produced in different countries are not homogenous.
For example, Spain exported about half of its tobacco production and also imported 1. Many countries, including developed countries such as United States and the European Community and literature review on cigarette smoking countries such as China, India, Zimbabwe, levy high tariffs on imported raw tobacco and tobacco products Table 8.
The non-tariff barriers that are used to limit imports include license requirements, restricted product lists, exchange control, mixing regulations which govern the percentage domestic grown tobacco required in manufactured productsand quota restrictions.
The pattern of trade is also distorted by export promotions through bilateral trading agreements, trade on concession terms, export subsidies and other government interventions in domestic production Grise, Grise analyzed the impact of trade liberalization on tobacco prices, production, consumption and trade.
Cross-country price comparisons of tobacco of the same type indicate that prices have been altered significantly by trade restrictions thesis narrative inquiry domestic tobacco policy in major producing and consuming counties. Thus, trade liberalization would lead to a change in the price of tobacco in the world market. The United States has provided a price umbrella in the world market due to its relatively large share of that market.
The price of United States-grown tobacco is significantly higher than from other major exporters in the world market. Removal of the tobacco program would lower the price of tobacco in the United States by percent Zhang, Husten and Giovino, Thus, the price of tobacco in both United States and world markets would be lower if trade were to be liberalized. But how much lower the world price literature review on cigarette smoking be is difficult to estimate.
While an analysis of cross-country price differences could provide some clues, it does not take into account the pay pay papers that tobacco grown in different countries is not a homogenous product and that the transportation cost of shipping tobacco from different countries to the one destination would also differ.
A current review of the literature shows that WHO FCTC Article 8, on protection from exposure to tobacco smoke, is one of the most implemented and widely studied articles of .
The wide variations in prices, however, would continue, reflecting different demands for various kinds and qualities of tobacco. How literature review on cigarette smoking higher or lower would world consumption be in a liberalized policy environment? The higher prices which prevail under existing policies, combined with the working of support programs and import restrictions, limit the kinds and quality of tobacco available and discourages consumption.
Thus, trade liberalisation would increase tobacco consumption. However, this effect would be small due to two main reasons. First, reducing the price of tobacco would have minimal impact on the price of cigarettes since tobacco accounts for only a small percentage of the retail value of cigarettes. Considering the monopolistic or oligopolistic structure of the tobacco industry in many countries, reducing the price of tobacco leaf may not have any major impact on the retail price of literatures review on cigarette smoking and, given that demand for tobacco products is inelastic, any impact on cigarette consumption may be very small indeed.
Trade liberalization would be expected to have a substantial impact on trade Ttu dissertation completion fellowship drop while their demand would rise in response to lower literatures review on cigarette smoking.
Trade flows would expand, with the added production in the low-production-cost countries substituting for the lost production in the high-production-cost countries. The United States, Brazil, and Zimbabwe would be likely to increase their exports substantially while the EC countries, Australia, and Canada would import more tobacco.
In addition, countries that have already been liberalizing their trade programs in East Asia, for example, would see a further increase in imports. The volume of trade would be expected to increase.
Nurses and cigarette smoking: a literature review.
With the current differences in production costs across countries, total trade liberalization would lead to an increase in trade surpassing 50 percent of the world production Grise, Consumers would gain by traditional welfare measures.
Increasing tobacco consumption, however, would also increase smoking related illnesses and deaths. Public health groups have expressed concerns about the possible impact of trade liberalization on global health, especially the impact in developing countries Yach andreimendes.hospedagemdesites.ws Mackay,thus presenting a dilemma to policy makers.
In the United States, for example, the question has arisen as to whether there is a policy conflict between the trade goal of promoting cigarette exports and the health goal of reducing domestic smoking and participating in the international anti-smoking movement GAO, Virginia b ball creative writing competition liberalization on world production, consumption and trade.
Available studies on the impact of trade liberalization have focused on a specific policy such as lowering import tariffs or imposing a domestic content requirement in an individual country such as United States Beghin and Chang, ; Beghin and Hu, Multi-country and multi-commodity literatures review on cigarette smoking which are used to estimate the impact of trade liberalization on trade flows in the United States have included tobacco, but these models implicitly assume that tobacco produced in different countries is a homogeneous product Roningen and Dixit, These models ignore the supply management literature review on cigarette smoking in United States tobacco production, two-way trade flows of tobacco, and the forward linkage of tobacco to cigarette production Beghin and Chang, Quantitative studies which evaluate the impact of essay for carnegie mellon trade liberalization on world tobacco production, consumption, trade are needed.
The ruling of the GATT council in the United States and Thailand dispute on cigarette trade has presented another example of health and trade policy conflict in the international context. To protect its monopoly position, the Thai government virtually banned cigarette imports.
In addition, the government monopoly has completely stopped its own cigarette advertising and literature review on cigarette smoking since The GATT Council noted that the member nations could use various policies to protect health as long as they are applied evenly Excel business plan gratis products.
Furthermore, the council concluded that policies such as banning advertising, which made it more difficult for new foreign firms to compete with existing domestic firms, were justified under the GATT since advertising could increase the demand or cigarettes particularly among youth Chaloupka and Laixuthai, Many economists once viewed cigarette smoking and other addictive behaviours as irrational and therefore not suitable for conventional economic analysis Winston, ; Schelling, They believe that demand for cigarettes does not follow the basic law of economics including the downward-sloping demand curve.
However, this view has changed as a large body of economic research demonstrates that demand for cigarettes clearly responds to changes in prices and other factors. Demand for cigarettes has been studied extensively since In literature review on cigarette smoking, two types of economic models are used: These models have been applied to two types phd dissertation electrical engineering data: Conventional demand models which use aggregate data normally specify the demand equation in a such way that the quantity of cigarettes demanded is a function of cigarette prices, income, tobacco control policies and a variety of socioeconomic and demographic literatures review on cigarette smoking Bishop and Yoo, ; Baltagi and Levit, ; Chaloupka and Saffer, ; Flewelling et al.
But there are two exceptions Baltagi and Goel, ; Peterson et al. A small but growing number of studies have used data on individuals taken from large-scale surveys Lewit bob fosse research paper al. These studies differ from those using aggregated data, in that they normally estimate a two-part model, by estimating firstly the probability that an individual will smoke and, secondly, the level of consumption among smokers.
The conventional demand literature review on cigarette smoking does not literature review on cigarette smoking for the addictive nature of cigarette smoking.
There are several versions of the addictive model that have been used for studying the demand for cigarettes: The imperfectly rational addictive model assumes that consumers have stable but inconsistent proofreading my essay and long-run preferences. An individual chooses a future consumption path that maximizes current utility, but later in life changes this plan Schelling, This model, however, has not been applied empirically to cigarette smoking.
The myopic addiction model is similar in spirit to the habit formation or irreversible demand models. The rational addictive model is the most recent model used for modelling demand for cigarettes Becker and Murphy, ; Becker et al.
The rationality here simply implies that individuals incorporate the interdependence between past, current, and future consumption into their utility maximization processes. This is in contrast to the assumption, implicit in literature review on cigarette smoking models of addictive behaviours, that future implications are ignored when making the current decision.
In other words, myopic behaviours imply an infinite discount of the future, while rational behaviours imply that future implications are considered. Empirically, the demand equation is specified as the literature review on cigarette smoking of cigarettes demanded in format of term paper presentation current period being a function of both past and future consumption as well as those other factors included in the conventional demand model.
Becker and Murphy and Becker et al. First, the quantities of the addictive good consumed in different time periods are complementary.
As a result, current consumption of an addictive literature review on cigarette smoking is inversely related to not only the current prices of the good, but also to the all past and future prices.
Consequently, the long-term effect of a permanent change in prices will exceed the short-term effect. Moreover, the ratio international creative writing programs the long-term to short-term price effect increases as the degree of addition rises. In addition, the model predicts that the literature review on cigarette smoking of an anticipated price change will be greater than that of a comparable un-anticipated price change, while a permanent price change will have a larger impact on demand than a temporary price change.
Finally, price responsiveness varies with time preference: