Costs of smoking and attempts to quit

Abstract

Using recent cross-sectional state-level data for the US, this article examines smoking quitting behaviour by smokers. In particular, we uniquely focus on how the costs of smoking, both direct and indirect costs, induce smokers to quit. Results show that the price of cigarettes and home smoking restrictions are the primary thrusts behind smokers' quit decision. The indirect costs due to workplace smoking restrictions, medical costs and a lack of insurance do not seem to significantly matter. The habit-forming effect of cigarettes is shown to lead to greater quit attempts. Policy implications are discussed.