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Cutler, David M.; Epstein, Arnold M.; Frank, Richard G.; Hartman, Raymond S.; King, Charles; Newhouse, Joseph P.; Rosenthal, Meredith B.; Vigdor, Elizabeth Richardson

doi:10.1023/a:1007863408004

Cited by 7 publications

(1 citation statement)

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“…(2) There are two methods to estimate the SAF index, the inclusive method and the disease-specific method. 16 The former method considers the share of total healthcare expenditure which is attributable to current and former smokers, whereas the latter method focuses only on the cost of certain diseases that are directly linked to smoking. To the best of our knowledge, there were only two studies, conducted by Ross et al 17 in 2005 and Hoang Anh et al 8 in 2011, that calculated the SAF index for Vietnam, and both of them used the disease-specific method.…”

Section: Methodology and Data Methodologymentioning

confidence: 99%

Impoverishing effect of tobacco use in Vietnam

Nguyen

Bui³

et al. 2022

Tob Control

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BackgroundTobacco consumption places a significant economic burden on households, which is particularly severe in developing countries like Vietnam. In a country where the social insurance system is weak and healthcare is often expensive, tobacco-consuming households may face a higher risk of living in poverty. Some evidence on the social consequences of tobacco consumption suggests that it might aggravate poverty and inequality in Vietnam; however, to the best of our knowledge, no research provides a reliable estimate of the impoverishing effect of tobacco use in the country thus far.ObjectivesThis study quantifies the direct impact of tobacco use on poverty, measured by a poverty head count and the total size of the poverty gap in Vietnam in 2018.MethodsBy deducting tobacco-related expenditure from the total household income, the authors recalculate the actual household disposable income and examine whether the households suffer from the state of secondary poverty. Data from the 2018 Vietnam Household Living Standards Survey were used for calculation.Results(1) Total tobacco-related expenditure increased the number of poor people by 305 090 (0.31% of the country’s population) in 2018. More than one-third of those impoverished people are children, who should be considered victims of adults’ tobacco use. (2) Tobacco use increased the poverty gap by 0.08 percentage points from 2.20% to 2.28%. (3) The impoverishment effects of tobacco consumption vary across groups in society and appear to be more intense in rural areas, among ethnic minorities and in the two lowest quintiles of consumption.ConclusionThis study confirms the impoverishing effect of tobacco use in Vietnam (305 090 people) and that the effects are heterogeneous across population groups. Therefore, controlling tobacco use should be a part of the broader poverty reduction strategy in Vietnam and should be wisely targeted so as to reduce poverty effectively.

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Section: Methodology and Data Methodologymentioning

confidence: 99%

Impoverishing effect of tobacco use in Vietnam

Nguyen

Bui³

et al. 2022

Tob Control

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The Economic impacts of the tobacco settlement

Cutler

Gruber²,

Hartman

et al. 2001

J Policy Anal Manage

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Recent litigation against the major tobacco companies culminated in a master settlement agreement (MSA) under which the participating companies agreed to compensate most states for Medicaid expenses. Here the terms of the settlement are outlined and its economic implications analyzed using data from Massachusetts. The financial compensation to Massachusetts (and other states) under the MSA is substantial. However, this compensation is dwarfed by the value of the health impacts induced by the settlement. Specifically, Medicaid spending will fall, but only by a modest amount. More importantly, the value of health benefits ($65 billion through 2025 in 1999 dollars) from increased longevity is an order of magnitude greater than any other impacts or payments. The net efficiency implications of the settlement turn mainly on a comparison of the value of these health benefits relative to a valuation of the foregone pleasure of smoking. To the extent that the value of the health benefits is not offset by the value of the pleasure foregone, the economic impacts of the MSA will include a share of these health benefits.

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Smoking, selection, and medical care expenditures

Darden

Kaestner

2022

J Risk Uncertain

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Cited by 7 publications

References 0 publications

Impoverishing effect of tobacco use in Vietnam

Impoverishing effect of tobacco use in Vietnam

The Economic impacts of the tobacco settlement

Smoking, selection, and medical care expenditures

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