Abstract
The tobacco industry is becoming more concerned to expand its markets as traditional consumers in industrialized countries become aware of the health hazards of smoking. As incomes increase in developing countries, these areas become the focus of attempts by the industry to stimulate consumption. It is therefore imperative to target policy so that it achieves maximum effectiveness before the cigarette habit becomes too entrenched. This paper examines the effect of increases in income upon consumption, and the implications this has for future policy action.

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