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High cigarette taxes act similarly to a price prohibition on the legal product in many US states, incentivizing smuggling and illicit activity.[10] After New York, the highest rate of smuggling occurs in California (46.7 percent of consumption smuggled), New Mexico (41.2 percent), Massachusetts (39.7 percent), and Washington (36.8 percent)

Given the above estimation results, we compute smuggling by type as a percentage of estimated per capita cigarette consumption in the state

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