Structural change in cigarette demand: cusum tests using panel data

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Structural change in cigarette demand: cusum tests using panel data

Author Info

John Schroeter () (Department of Economics, Iowa State University)
Aju Fenn () (Department of Economics and Business, The Colorado College)

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Abstract

We conduct cusum tests of structural change in a rational addiction model of cigarette demand estimated using a panel of annual time series of state-level data. In contrast to the one previous application of cusum tests to the question of cigarette demand stability, our results provide strong evidence of downward shifts in demand during the modern era of health warnings and anti-smoking campaigns.

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Publisher Info
Article provided by Economics Bulletin in its journal Economics Bulletin.

Volume (Year): 9 (2005)
Issue (Month): 8 ()
Pages: 1-11
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Handle: RePEc:ebl:ecbull:v:9:y:2005:i:8:p:1-11

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Paper
- Schroeter, John R. & Fenn, Aju J, 2005. "Structural Change in Cigarette Demand: Cusum Tests using Panel Data," Staff General Research Papers 12425, Iowa State University, Department of Economics.

Find related papers by JEL classification:
I1 - Health, Education, and Welfare - - Health
D1 - Microeconomics - - Household Behavior

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

Gallet, Craig & Agarwal, Rajshree, 1999. "The Gradual Response of Cigarette Demand to Health Information," Bulletin of Economic Research, Blackwell Publishing, vol. 51(3), pages 259-65, July.
Han, Aaron K & Park, Daekeun, 1989. "Testing for Structural Change in Panel Data: Application to a Study of U.S. Foreign Trade in Manufacturing Goods," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 135-42, February. [Downloadable!] (restricted)
Hamilton, James L, 1972. "The Demand for Cigarettes: Advertising, the Health Scare, and the Cigarette Advertising Ban," The Review of Economics and Statistics, MIT Press, vol. 54(4), pages 401-11, November. [Downloadable!] (restricted)
Fenn, Aju J. & Antonovitz, Frances & Schroeter, John R., 2001. "Cigarettes and addiction information: new evidence in support of the rational addiction model," Economics Letters, Elsevier, vol. 72(1), pages 39-45, July. [Downloadable!] (restricted)
Other versions:
- Fenn, Aju & Antonovitz, Frances & Schroeter, John, 2002. "Cigarettes and Addiction Information: New Evidence in Support of the Rational Addiction Model," Staff General Research Papers 5117, Iowa State University, Department of Economics.
Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1994. "An Empirical Analysis of Cigarette Addiction," NBER Working Papers 3322, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990. "An Empirical Analysis of Cigarette Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 61, Chicago - Center for Study of Economy and State.
- Becker, Gary S & Grossman, Michael & Murphy, Kevin M, 1994. "An Empirical Analysis of Cigarette Addiction," American Economic Review, American Economic Association, vol. 84(3), pages 396-418, June.
Dufour, Jean-Marie, 1982. "Recursive stability analysis of linear regression relationships: An exploratory methodology," Journal of Econometrics, Elsevier, vol. 19(1), pages 31-76, May. [Downloadable!] (restricted)
Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
Other versions:
- Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.

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This page was last updated on 2009-12-12.

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