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The Demand for Vices in Malaysia: An Ethnic Comparison Using Household Expenditure Data

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  • Andrew Tan
  • Steven Yen
  • Rodolfo Nayga

Abstract

A trivariate Tobit system is estimated to investigate the demand for vices (tobacco, alcohol, and gambling) in Malaysia. Estimation results, segmented by ethnicity, suggest that years of formal education, occupation type, and household head’s age negatively affect both the likelihood to spend and the overall amounts spent on tobacco by all Malaysians. Additionally, while higher income Malay households are more likely to spend and have higher tobacco expenditures, affluent Chinese and households of other races are more likely to spend and to spend more on smoking, drinking and gambling. Male-headed households of all races are more likely to spend and also spend more on smoking, drinking and gambling than female-led households. Copyright International Atlantic Economic Society 2009

Suggested Citation

  • Andrew Tan & Steven Yen & Rodolfo Nayga, 2009. "The Demand for Vices in Malaysia: An Ethnic Comparison Using Household Expenditure Data," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(4), pages 367-382, December.
    • Handle: RePEc:kap:atlecj:v:37:y:2009:i:4:p:367-382
    DOI: 10.1007/s11293-009-9194-6
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    References listed on IDEAS

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    More about this item

    Keywords

    Demand for vices; Trivariate Tobit; Malaysia; D10;
    All these keywords.

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General

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