British journal of addiction
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This paper is concerned with the use of economic models in the debate about the role that tax increases and restrictions on advertising should play in reducing the health problems that arise from the consumption of alcohol and tobacco. It is argued that properly specified demand models that take account of all the important factors that influence consumption are required, otherwise inadequate modelling may lead to misleading estimates of the effects of policy changes. The ability of economics to deal with goods such as alcohol and tobacco that have addictive characteristics receives special attention. Recent advances in economic theory, estimation techniques and statistical testing are discussed, as is the problem of identifying policy recommendations from empirical results.
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The changing pattern of consumption of alcoholic beverages in Ireland and the association between this and the trend in alcohol-related problems are examined. As a result of a relatively low price and high income elasticities of demand for alcoholic beverages, the high level of taxation of alcohol in Ireland has resulted in an exceptionally large proportion of income being devoted to purchasing them rather than to a fall in their consumption. ⋯ Further pressure to reduce the level of taxation is coming from the move to harmonize taxes across EC member states. The limitations of taxation policy as a means of controlling the consumption of demerit goods in a small economy are clearly illustrated by the Irish experience.
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This article shows the contribution of economics to debates about prevention policy. The arguments used by various pressure groups favouring or opposing more effective prevention policies need to be subject to critical scrutiny and empirical testing. ⋯ The supply side of the market in the form of the alcohol and tobacco industries is analysed using a structure-performance framework. Consideration is given to how firms might respond to prevention policies through, say, lobbying or shifting higher taxes to suppliers or by diversifying into new markets.
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After several decades absence, opium smoking has reappeared in the U. S. ⋯ In addition, the factors contributing to a fertile situation for opium addiction are presented. Finally, implications of these findings and remedial recommendations are suggested.