- Estimation of tobacco price elasticity in Serbia using aggregate time-series data
- The elasticity of tobacco products
- The Elasticity of Tobacco Products in Macedonia
- Tobacco demand elasticity and fiscal policy- the case of Albania
- The Elasticity of Tobacco Products in BiH- macro data analysis
- Error Correction Model Analysis of Tobacco Consumption in Kosovo*
- Tobacco price elasticity in Serbia: using the micro data from Household Budget Survey and Deaton demand model
- Tobacco price elasticity in Bosnia: micro data analysis
- Tobacco price elasticity in Montenegro: using the micro data from Household Budget Survey and Deaton demand model
- Estimating tobacco price elasticity in Kosovo: using the micro data from Household Budget Survey (2007 – 2017) and Deaton demand model
- Fiscal policy impact on tobacco consumption in high smoking prevalence transition economies – the case of Albania
Tobacco price elasticity in Montenegro: using the micro data from Household Budget Survey and Deaton demand model
Ana Mugoša , Mirjana Čizmović, Tanja Laković, Milenko Popović
Abstract: The main goal of this research is to estimate the price elasticity of cigarette demand in Montenegro, applying Micro analysis. The data related to cigarettes consumption was derived from the Household Budget Survey (HBS), covering the period from 2006-2017. The long-run and short-run elasticities of cigarette demand, in context of price and income were estimated using Deaton’s model. Results of the estimation indicate a negative price elasticity of cigarettes, while the value of total expenditure elasticity is positive (which was expected). The analysis of the tobacco market and regulatory shows that the increase in excise taxes will have direct positive effect – decrease in quantity of cigarettes demanded. The results are in line with the previously conducted research in low and middle-income countries.
Keywords: price and income elasticity of cigarette demand; HBS; excise taxes; Montenegro
January 2019
