Graduation Year

Fall 2013

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Second Department

Legal Studies

Reader 1

Ralph Rossum

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Rights Information

© 2013 Iman Naqvi

Abstract

ABSTRACT

This study provides an empirical analysis of the effect of tobacco marketing regulation on unit sales, in order to evaluate the effectiveness these laws in the United States. The analysis did not find a significant effect of tobacco advertising expenditure on unit sales. Examination of advertising expenditure revealed that tobacco companies substituted banned forms of advertising for other marketing strategies, leading to little reduction in total advertising expenditure and a limited effect on sales. Furthermore, it found an unexpected positive relationship between the 1971 Public Health Cigarette Smoking Act and tobacco consumption; the ban on advertising and promotion actually increased sales by over 88 billion units. Additional empirical evidence is provided from studies performed by Fight Ordinances and Restrictions to Control and Eliminate Smoking (FORCES) and Saffer and Chaloupka that show correspondingly inconclusive results. The paper then discusses several policy implications and subsequent recommendations that follow from these results.

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