Cutler, David M. <br/><br/>
The Economic Impacts of the Tobacco Settlement / 
David M. Cutler, Jonathan Gruber, Raymond S. Hartman, M.B. Landrum, J. Newhouse, Meredith B. Rosenthal. 
 - Cambridge, Mass.  National Bureau of Economic Research  2000. 
 - 1 online resource:  illustrations (black and white); 
 - NBER working paper series  no. w7760 .
 - Working Paper Series (National Bureau of Economic Research)  no. w7760. .
<br/><br/> June 2000. 
<br/><br/> Recent litigation against major tobacco companies culminated in a  Master Settlement Agreement' (MSA) under which the participating companies agreed to compensate most states for Medicaid expenses. We outline the terms of the settlement and analyze whether it was a move toward economic efficiency using data from Massachusetts.  Medicaid spending will fall, but only a modest amount ($0.1 billion). The efficiency issue turns mainly on the treatment of health benefits from reduced smoking induced by the settlement.  We conclude that the settlement was a move towards economic efficiency. 
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