Research Study Presentation Montenegro- Institute for Socio Economic Analysis (ISEA)

Research Study Presentation Montenegro- Institute for Socio Economic Analysis (ISEA)

The primary objective of this part of the study is to estimate the price elasticity of cigarette demand, as an important input for a tax policy targeted to reduce tobacco consumption.

We conducted two analyses based on different level of data aggregation:

Estimation of price and income elasticity of cigarette demand using a sample of available annual time series of secondary aggregate economic data related to the tobacco market in Montenegro from 2001 to 2017 (macro - level analysis).

Estimation of price and income elasticity of cigarette demand based on the Household Budget Survey (HBS) data for years from 2006 to 2017, provided by Statistical Office of Montenegro - Monstat (micro-level analysis).