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Testing for the rational addiction hypothesis in Spanish tobacco consumption

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  • Jose Julian Escario
  • Jose Alberto Molina

Abstract

This paper tests whether tobacco consumption generates addiction in Spanish people and, if so, then whether such addiction can be explained in the context of rational addiction theory. To that end, time-series data of per-capita consumption and prices of tobacco during the period 1964 to 1995 are employed. The results show the addictive and rational character of Spanish tobacco consumption, which implies that smokers fall into addiction after a maximization process of the utility that was obtained during their total lifetime, taking into account the future consequences of current decisions.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 8 (2001)
Issue (Month): 4 ()
Pages: 211-215

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Handle: RePEc:taf:apeclt:v:8:y:2001:i:4:p:211-215

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Cited by:
  1. Joan Costa-Font & Joan Rovira, 2005. "When do smokers 'underestimate' smoking related mortality risks?," Applied Economics Letters, Taylor & Francis Journals, vol. 12(13), pages 789-794.
  2. Thomas Demuynck & Ewout Verriest, 2013. "I’Ll Never Forget My First Cigarette: A Revealed Preference Analysis Of The “Habits As Durables” Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 54(2), pages 717-738, 05.
  3. Silvia Tiezzi, 2003. "Addiction and Smoking Behaviour in Italy," Department of Economics University of Siena 412, Department of Economics, University of Siena.
  4. Ciccarelli, Carlo & Giamboni, Luigi & Waldmann, Robert, 2007. "Cigarette smoking, pregnancy, forward looking behavior and dynamic inconsistency," MPRA Paper 8878, University Library of Munich, Germany.
  5. Escario, Jose Julian & Molina, Jose Alberto, 2004. "Modeling the optimal fiscal policy on tobacco consumption," Journal of Policy Modeling, Elsevier, vol. 26(1), pages 81-93, January.
  6. Silvia Tiezzi, 2005. "An empirical analysis of tobacco addiction in Italy," The European Journal of Health Economics, Springer, vol. 6(3), pages 233-243, September.
  7. Martyn Duffy, 2006. "Tobacco consumption and policy in the United Kingdom," Applied Economics, Taylor & Francis Journals, vol. 38(11), pages 1235-1257.
  8. Junmin Wan, 2004. "Cigarette Tax Revenues and Tobacco Control in Japan," Discussion Papers in Economics and Business 04-11-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Feb 2006.
  9. Pierpaolo Pierani & Silvia Tiezzi, 2009. "Addiction and interaction between alcohol and tobacco consumption," Empirical Economics, Springer, vol. 37(1), pages 1-23, September.

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