Effect of generic cigarettes on US cigarette demand and smuggling

This paper examines the effects of generic cigarettes on overall cigarette demand and smuggling, and studies influences of casual and organized smuggling for the United States. Generic cigarettes lower the price elasticity and diminish the effect of formal smuggling.

► This paper examines effects of generic cigarettes on cigarette demand and smuggling. ► Influences of casual and organized smuggling are also considered. ► Generic cigarettes lower price elasticity and diminish the effect of formal smuggling.