This paper examines the political interdependence of federal and state cigarette tax rates. We develop a lobby group model where a state’s endogenous reaction to a federal cigarette tax hike depends crucially on the political responses of the cigarette producer and anti-smoking lobby groups.
Mamun, Khawaja. "A Theory of Vertical Political Interaction in Cigarette Taxation." Indian Journal of Economics and Business 11.2 (2012): 261-269.