Economic gains and health benefits from a new cigarette tax scheme in Taiwan: a simulation using the CGE model

BACKGROUND: This study evaluates the impact of an increase in cigarette tax in Taiwan in terms of the effects it has on the overall economy and the health benefits that it brings. METHODS: The multisector computable general equilibrium (CGE) model was used to simulate the impact of reduced cigarette consumption resulting from a new tax scheme on the entire economy gains and on health benefits. RESULTS: The results predict that because of the new tax scheme, there should be a marked reduction in cigarette consumption but a notable increase in health benefits that include saving between 28,125 and 56,250 lives. This could save NT$1.222~2.445 billion (where US$1 = NT$34.6) annually in life-threatening, cigarette-related health insurance expenses which exceeds the projected decrease of NT$1.275 billion in Gross Domestic Product (GDP) because of reduced consumption and therefore tax revenue. CONCLUSION: Overall, the increased cigarette excise tax will be beneficial in terms of both the health of the general public and the economy as a whole

The synergistic effect of cigarette taxes on the consumption of cigarettes, alcohol and betel nuts

<p>Abstract</p> <p>Background</p> <p>Consumption of cigarettes and alcoholic beverages creates serious health consequences for individuals and overwhelming financial burdens for governments around the world. In Asia, a third stimulant – betel nuts – increases this burden exponentially. For example, individuals who simultaneously smoke, chew betel nuts and drink alcohol are approximately 123 times more likely to develop oral, pharyngeal and laryngeal cancer than are those who do not.</p> <p>To discourage consumption of cigarettes, the government of Taiwan has imposed three taxes over the last two decades. It now wishes to lower consumption of betel nuts. To assist in this effort, our study poses two questions: 1) Will the imposition of an NT$10 Health Tax on cigarettes effectively reduce cigarette consumption? and 2) Will this cigarette tax also reduce consumption of alcoholic beverages and betel nuts? To answer these questions, we analyze the effect of the NT$10 tax on overall cigarette consumption as well as the cross price elasticities of cigarettes, betel nuts, and alcoholic beverages.</p> <p>Methods</p> <p>To establish the Central Bureau of Statistics demand function, we used cigarette, betel nut, and alcoholic beverage price and sales volume data for the years 1972–2002. To estimate the overall demand price elasticity of cigarettes, betel nuts, and alcoholic beverages, we used a seemingly unrelated regression analysis.</p> <p>Results</p> <p>We find that the NT$10 health tax on cigarettes will reduce cigarette consumption by a significant 27.22$10 health tax on cigarettes will reduce betel nut consumption by 20.07% and alcohol consumption by 7.5%.</p> <p>Conclusion</p> <p>The assessment of a health tax on cigarettes as a smoking control policy tool yields a win-win outcome for both government and consumers because it not only reduces cigarette consumption, but it also reduces betel nut and alcoholic beverage consumption due to a synergistic relationship. Revenues generated by the tax can be used to fund city and county smoking control programs as well as to meet the health insurance system's current financial shortfall.</p

Inward and outward foreign direct investment and poverty: East Asia vs. Latin America

Foreign direct investment, Poverty, Openness, Globalization, F1, O1, I3,

A Novel Apparatus for the Multifaceted Evaluation of Arterial Function Through Transmural Pressure Manipulation

A novel apparatus for the multifaceted evaluation of artery function was developed. It measures endothelial and smooth muscle functions and the pressure–strain elastic modulus (Ep). A rigid airtight chamber with an ultrasound probe was attached to the upper arm to manipulate the transmural pressure of the brachial artery. Endothelial function was measured via a standard flow-mediated dilation (FMD) protocol. Smooth muscle function was evaluated via a myogenic contraction of the artery following the application of negative pressure to the chamber and was named pressure-mediated contraction (PMC). Ep was obtained by measuring the instantaneous increase in the artery diameter following the negative pressure application. The PMC and FMD values had a significant negative correlation with age, indicating that the age-related decrease in FMD is caused by the decay of endothelial and smooth muscle function. A consideration of PMC may help improve the accuracy of artery function measurement. Ep in subjects aged >40 years was found to be significantly higher in the supra-physiological pressure range than in the physiological one (p = 0.02); this did not occur in younger subjects. Artery stiffening may begin in the supra-physiological range, and this stiffness may also be used for the diagnosis of atherosclerosis.journal articl