Environmental Tobacco Smoke and Children’s Health

My research investigates the relationship between environmental tobacco smoke (ETS) exposure and lung function in children. I test the sensitivity of ETS exposure in children to cigarette prices using state-level variation in cigarette excise taxes. I use an instrumental variables (IVs) approach to estimate the effect of ETS on lung function. Results indicate that ETS exposure is sensitive to taxes: Elasticity of exposure with respect to taxes ranges from 0.62 to 1.11. For the outcome-forced expiratory volume measured in the first second of breath, I find that having one smoker in the household reduces lung function by 1.4 percent; having a second smoker increases the deficit to 2.5 percent