Rational addiction and the demand for cinema
AbstractThis paper estimates Becker's rational addiction model using a demand for cinema equation. The results do not seem to be strongly supportive of the rational addiction model. As in Becker, Murphy, Grossman we find a significant coefficient on the lead consumption term and a quite plausible discount rate in OLS estimation with significant price effects. However the IV estimates preferred by Becker et al. fails to give support for any elements of the model.
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Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Applied Economics Letters.
Volume (Year): 6 (1999)
Issue (Month): 9 ()
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