Table 2

Simulation of alternative increases in cigarette retail price by increased taxes using quarterly data, Argentina, 2010

Long-term own-price elasticity=−0.31
Status quoPrice increase
2010 Q:410%20%30%40%50%60%110%
A. Average retail price ($)5.976.547.167.768.368.969.5512.54
B. Average tax per pack ($)4.064.474.875.285.686.096.508.53
C. Total cigarette consumption in millions of packs554.58537.39520.20503.00485.81468.62451.43365.47
D. Changes in C (decrease)(17.19)(34.38)(51.58)(68.77)(85.96)(103.15)(189.11)
E. Cigarette consumption per person >14 years old (packs)18.1817.6217.0516.4915.9315.3614.8011.98
F. Changes in E (decrease)(0.56)(1.13)(1.69)(2.25)(2.82)(3.38)(6.20)
G. Revenue from cigarette tax in millions of pesos2251.592399.742534.152654.592761.082853.622932.193115.68
H. Changes in G148.14282.55403.00509.49602.02680.59864.08
  • Note: US$1=$ 4.01 pesos in December 2010.

  • Source: own calculations.