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【Abstract】In this research paper two empirical methodologies are used for studying the relation between cigarette price and cigarette consumption in America with available statistical information. The purpose of the paper is to investigate whether the price of cigarette is a powerful method for cutting cigarette consumption. The statistical information used in the paper is collected from 48 U.S. states over the period from 1985 to 1995 for examining the effect of cigarette price and others independent variables on cigarette consumption. Ordinary least squares （OLS） regression model and Least square dummy variable model are used to determine effect of cigarette price. Furthermore， other factors such as GDP per capita， population and Consumer price index （CPI）， have been added into the model to attest to their potential nexuses with cigarette consumption. The result of the report shows that any increase in the price of cigarettes will decrease personal consumption of cigarettes. Higher prices increase costs to consumers and discourage cigarette consumption. The percentage decline in consumption caused by a percentage increase in price is measured by price elasticity of demand. Based on the analysis， it could be safely concluded that increasing price is still an effective instrument for cutting down the cigarette consumption.
【Key words】price elasticity； cigarette consumption； tobacco taxes
【摘要】两种经验方法在这篇研究论文中使用，为了调查在美国香烟价格跟香烟需求的关系通过可以找到的数据信息。这篇论文的目的为了调查香烟的价格是否是一个强有力的方式去减少香烟的需求。论文中的的数据收集来源于美国的48个州从1985年到1995年，目的是检测香烟价格跟其他独立的变量对香烟需求的作用。最小二乘回归模型跟虚拟变量的最小二乘法模型已经使用去决定香烟价格的作用。此外，其他因素像人均GDP，人口，CPI也使用在模型中去证实潜在的关系对于香烟需求。报告结果显示了任何方式的香烟价格上升将会导致个人香烟需求的下降。香烟需求的百分比下降取决于香烟价格的百分比上升，这个现象可以通过需求的价格弹性去估量。基于报告的分析可以放心的作出结论，香烟价格上升仍然是一种有效的工具去减少香烟的需求。
【关键词】价格弹性 香烟需求 烟草税
Introduction
Cigarette use and consumption have been identified as one of the overarching causes of preventable morbidity and dying prematurely in America （American Lung Association， 2012）. This paper portrays the landscape of cigarette consumption between 1985 to 1995 by studying in detail the relation between cigarette prices and cigarette consumption with the available statistical information （see figure 1
【Key words】price elasticity； cigarette consumption； tobacco taxes
【摘要】两种经验方法在这篇研究论文中使用，为了调查在美国香烟价格跟香烟需求的关系通过可以找到的数据信息。这篇论文的目的为了调查香烟的价格是否是一个强有力的方式去减少香烟的需求。论文中的的数据收集来源于美国的48个州从1985年到1995年，目的是检测香烟价格跟其他独立的变量对香烟需求的作用。最小二乘回归模型跟虚拟变量的最小二乘法模型已经使用去决定香烟价格的作用。此外，其他因素像人均GDP，人口，CPI也使用在模型中去证实潜在的关系对于香烟需求。报告结果显示了任何方式的香烟价格上升将会导致个人香烟需求的下降。香烟需求的百分比下降取决于香烟价格的百分比上升，这个现象可以通过需求的价格弹性去估量。基于报告的分析可以放心的作出结论，香烟价格上升仍然是一种有效的工具去减少香烟的需求。
【关键词】价格弹性 香烟需求 烟草税
Introduction
Cigarette use and consumption have been identified as one of the overarching causes of preventable morbidity and dying prematurely in America （American Lung Association， 2012）. This paper portrays the landscape of cigarette consumption between 1985 to 1995 by studying in detail the relation between cigarette prices and cigarette consumption with the available statistical information （see figure 1