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But, the constant introduction of new brands and products makes it hard to close loopholes

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6 7 These approaches reduce the impact of excise taxes and thus reduce the motivation of price sensitive people to quit smoking

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Tiller, Feleke, and Starnes (2011) estimated that if domestic demand for cigarettes fell by 10% and cost of production increased by 30%, tobacco revenue would fall between roughly 7% and 9.5%