A Toolkit for Estimating the Distributional Impact of Tobacco Taxes

This Toolkit was written by Frank J. Chaloupka, Alan Fuchs Tarlovsky, Maria Fernanda Gonzalez Icaza, German Rodriguez-Iglesias, and Violeta Vulovic. The toolkit provides guidance to researchers who aim to analyze the distributional impacts of tobacco taxation especially in low- and middle-income countries. The authors provide background on the relevant concepts and existing literature, as well as present a theoretical framework. They delve into two methods for estimating the distributional impact: the accounting approach and extended cost-benefit analysis (ECBA). Step-by-step Stata instructions are discussed for each method, in addition to the initial data requirements and limitations. The toolkit also includes a country case study in which the researchers implement an ECBA using microdata from Georgia to calculate distributional impact.

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