We use the universe of birth records in the United States from 2013 to 2018 to examine the effect of e-cigarette tax rates on pre-pregnancy smoking and prenatal smoking.

We study these questions using two-way fixed effects models and pregnancy fixed effects models.

We show that e-cigarette taxes increase pre-pregnancy smoking, increase prenatal smoking, and lower smoking cessation during pregnancy. These findings imply that e-cigarettes and traditional cigarettes are substitutes among pregnant women. We also find evidence that e-cigarette taxes reduce pre-pregnancy and third trimester e-cigarette use.

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Rahi Abouk, Scott Adams, Bo Feng, Johanna Catherine Maclean & Michael F. Pesko – National Bureau of Economic Research – 2019-07-05.

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