Do tax hikes lead to revenue increases?

摘要

Tobacco share prices have risen rapidly over the last few months but in mid-January they missed a beat when analysts at the Dutch bank, ABN Amro warned that the industry might be losing its pricing power. The warning was certainly stark. It suggested that in Western Europe at least, the industry's power to maintain premium prices was weakening. Despite this, share prices have continued to rise since then so maybe there is nothing to worry about. Or is there?