Cigarettes are highly taxed in Europe to discourage tobacco use and to fund public-health measures to mitigate the harms from tobacco consumption. At higher prices some consumers substitute more toward illicit cigarettes. We find that raising prices in any one country would lead to substantial increases in the expected illicit market share and volume in that country. This appendix contains more complete information about the data and additional regressions to which the article published in Economic Inquiry (and also available in earlier form as School of Public Policy Working Paper 60) refers.
Prieger, James and Kulick, Jonathan D., "Cigarette Taxes and Illicit Trade in Europe Online Appendix" (2017). Pepperdine University, School of Public Policy Working Papers. Paper 71.