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Issue addressed in the article
According to the article under consideration, increase in price of cigarettes can positively or negatively affect the rate of smoking among the youth. Imposing high taxes on tobacco increases the price of cigarettes. Consequently, this will reduce the rate of smoking among the youth.
The issue is vital as it addresses a problem that affects a number of young people across the world. Over the past years, the rate of smoking among the twelfth grade students has been steadily increasing.
Economic model used to study the issue
Economic model of an individuals behavior in the article studies the effect of increasing cigarette tax on smokers. According to this model, consumers make decisions by evaluating the alleged marginal benefits against alleged marginal costs.
Additionally, financial cost of cigarette plays a trivial part in the choices made by youth who smoke. According to theoretical economic model, the rate of smoking among the youth does not depend on the price of cigarettes. Consequently, this makes their demand flexible.
Advantages of using the models
The models discussed above are more superior to earlier models since they validate quantitative predictions and translate them into accurate numerical outcomes. For instance, theoretical models of consumer behavior imply a constructive association between expenditure and income.
In addition, they contain numerical equations that illustrate an assumption of economic behavior. The models are easy to interpret compared to the earlier models. For instance, imposing high taxes on cigarettes causes the price increase. As a result, many smokers will reduce their rate of smoking.
Data used in the article
Cross-sectional and longitudinal data used in the article serve to look at how increased tax on tobacco negatively or positively affects the rate of smoking among the youth. Moreover, longitudinal data provides relevant information regarding the eighth grade students and the rate at which they smoke.
In the models, the collected data should be translated into three different cross sections. Empirical model examines the onset of smoking by considering the number of the eighth grade students who are not smoking.
Statistical test applied in the models
To test the models, the percentage increase in smoking among the youth should be compared with percentage decrease. Moreover, the test should be conducted after increasing taxes on cigarettes. From the results, conclusions regarding the effect of increasing cigarette prices on the rate of smoking should be made.
Summary of the conclusions
Previous statistics shows that price flexibility has not contributed to the reduced or increased rate of smoking among the youth. Nonetheless, the results ignore the notion that the current rate of smoking should be related to the previous decision to start smoking. According to statistics, increased rate of cigarette taxation does not affect the onset of smoking.
The conclusions are not only made from statistics, but also the prevalence of a number of evidences provided. A number of high school students could still smoke despite increasing the price of cigarettes. Additionally, high rate of smoking among the youth comes as a result of peer influence, but not the price of cigarettes.
According to results reported in the article, learners who quit their studies tend to smoke for a longer time before dropping it. Additionally, students who perform poorly in their exams also tend to smoke more that those performing well.
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