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RI cigarette tax rised $1--its effect on housing?

Most Rhode Islanders know by now that RI Cigarette tax rises $1.

I am an economist and always try to link policies and events to potential economic result.

Now for this $1 increase, together with the high unemployment rate, I wonder if that might give some smokers a reason to move out of Rhode Island.

I do not have any data to do research on so this is just a thought. Anybody got any data or theorectic predictions? It would be a fun research.

Posted by Huiting Zhuang,Sell your business overseas on 04/09/2009 12:41 PM

Comments (4)

Originally posted at: Huiting's Blog: RI cigarette tax rised $1--its effect on housing?

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4 Comments on RI cigarette tax rised $1--its effect on housing?

APR

That sounds a little extreme. Hopefully that would be an incentive to quit smoking rather than pack up bags and move out of State!

HZ - there will probably be a few that might move but not enough to make a statistical impact on the real estate market. I do see it having perhaps a secondary effect, less discretionary spending in time when that is already down might depress the R.I. economy more which could have a real estate impact.

Ellie, yes, it does sound a little extreme as the average impact would be around $60/month if only one pack is consumer per day. Given that most smokers are not financially sound, I thought it might be enough for some to make a decision.

Mike, you are right. Definitely less discretionary spending for smokers. As far as real estate impact, it does sound like a very small variable.

APR

I suspect they won't be moving to California. About the only smoking you can do out here now is inhaling deeply when the wildfires roar through. Disclosure: I'm not a smoker and never have been.

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