Impact of Tobacco Spending on Intra-household Resource Allocation in Montenegro (2022)

Impact of Tobacco Spending on Intra-household Resource Allocation in Montenegro (2022)

This Policy Brief examines the crowding-out impact of tobacco expenditures on household budget allocation to other commodities in Montenegro. The authors find smoking households in Montenegro spend less on essential commodities, and more on bars and restaurants, alcohol, coffee, and sugary drinks. These effects impact the greater economy as well, increasing inequality and hampering human capital development. The policy brief concludes by recommending that policymakers strengthen and accelerate tobacco control policies, including raising tobacco excise taxes and ensuring that smoke-free policies are implemented effectively.

Impact of Tobacco Spending on Intra-household Resource Allocation in Montenegro (2022) - download here.