Abstract

IBARRA SALAZAR, Jorge et al. Labeling Regulation in the Mexican Tobacco Industry: Effect of Pictorial Warning Labels on Tobacco Demand. Econ: teor. práct [online]. 2019, n.51, pp.73-103.  Epub Oct 29, 2019. ISSN 2448-7481.  https://doi.org/10.24275/etypuam/ne/512019/ibarra.

In this paper, we investigate the effect of graphic warning labels on the Mexican tobacco demand. The conventional, myopic and rational models of demand are estimated with quarterly time series from 1994 to 2013. We use ordinary least squares and two-stage least squares with instrumental variables. We used the Prais-Winsten method to correct autocorrelation and estimated robust errors to correct heteroscedasticity. We found evidence that the second and third pictograms rounds caused a significant reduction in the consumption of approximately one pack of cigarettes per capita. The regulatory policy towards packaging and labeling has been effective in reducing tobacco demand in Mexico.

Keywords : Tobacco industry regulation; pictorial health warnings; tobacco demand; Mexico.