@TechReport{iza:izadps:dp1849,
            	author={Adda, Jérôme and Cornaglia, Francesca},
            	title={Taxes, Cigarette Consumption and Smoking Intensity},
            	year={2005},
	month={Nov},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={1849},
            	url={https://www.iza.org/publications/dp1849},
	abstract={This paper analyses the compensatory behavior of smokers. Exploiting data on cotinine concentration – a metabolite of nicotine – measured in a large population of smokers over time, we show that smokers compensate tax hikes by extracting more nicotine per cigarette. Our study makes two important contributions. First, as smoking more intensively a given cigarette is detrimental to health, our results question the usefulness of tax increases. Second, we develop a model of rational addiction where agents can also adjust their intensity of smoking and we show that the previous empirical results suffer from severe estimation biases.},
	keywords={smoking;cigarettes;addiction;taxes},
            }