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A censored system of cigarette and alcohol consumption

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  • Shew-Jiuan Su
  • Steven Yen
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    Abstract

    Many previous studies of US cigarette and alcohol consumption have focused on single equations. However, the addictive nature of consumption suggests that it is more appropriate to model these products as a system. We propose a two-step estimation procedure and apply the procedure to a system of equations for cigarette, beer and wine consumption. Results differ from those derived from an existing two-step procedure. Findings suggest that consumption of cigarettes, beer and wine is responsive to income changes but the elasticities are rather small. Personal physiques, education, age, race, ethnicity, health, gender, employment status, and regions also play significant roles in consumption.

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    File URL: http://www.tandfonline.com/doi/abs/10.1080/000368400322354
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    Bibliographic Info

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

    Volume (Year): 32 (2000)
    Issue (Month): 6 ()
    Pages: 729-737

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    Handle: RePEc:taf:applec:v:32:y:2000:i:6:p:729-737

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    Cited by:
    1. Zhuo Chen & Steven Yen, 2005. "On bias correction in the multivariate sample-selection model," Applied Economics, Taylor & Francis Journals, vol. 37(21), pages 2459-2468.
    2. Bask, Mikael & Melkersson, Maria, 2001. "Rationally Addicted to Drinking and Smoking?," UmeÃ¥ Economic Studies 567, Umeå University, Department of Economics.
    3. Göhlmann, Silja & Requate, Till & Schmidt, Christoph M & Tauchmann, Harald, 2008. "Tobacco and Alcohol: Complements or Substitutes? A Structural Model Approach," CEPR Discussion Papers 6780, C.E.P.R. Discussion Papers.
    4. Lopez, Jose Antonio & Malaga, Jaime E., 2009. "Forecast and Simulation Analysis of Mexican Meat Consumption at the Table Cut Level: Impacts on U.S. Exports," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 51986, Agricultural and Applied Economics Association.
    5. Kallas, Zein & Gil, Jose Maria & Serra, Teresa, 2009. "Effects of policy instruments on farm investments and production decisions in the Spanish cop sector," 113th Seminar, September 3-6, 2009, Chania, Crete, Greece 58036, European Association of Agricultural Economists.
    6. Yen, Steven T. & Yuan, Yan & Liu, Xiaowen, 2009. "Alcohol consumption by men in China: A non-Gaussian censored system approach," China Economic Review, Elsevier, vol. 20(2), pages 162-173, June.
    7. Abdulbaki Bilgic & Wojciech Florkowski & Cuma Akbay, 2010. "Demand for cigarettes in Turkey: an application of count data models," Empirical Economics, Springer, vol. 39(3), pages 733-765, December.
    8. Fabiosa, Jacinto F. & Jensen, Helen H. & Yan, Dong, 2005. "Household Welfare Cost of the Indonesian Macroeconomic Crisis," 2005 Annual meeting, July 24-27, Providence, RI 19311, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    9. David Aristei & Luca Pieroni, 2008. "A double-hurdle approach to modelling tobacco consumption in Italy," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2463-2476.
    10. Lopez, Jose Antonio & Malaga, Jaime E. & Chidmi, Benaissa & Belasco, Eric J. & Surles, James, 2012. "Mexican Meat Demand at the Table Cut Level: Estimating a Censored Demand System in a Complex Survey," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), July.
    11. Takashi Unayama, 2006. "The Engel curve for alcohol and the rank of demand systems," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 21(7), pages 1019-1038.
    12. Fadhuile, Adelaide & Lemarie, Stephane & Pirotte, Alain, 2011. "Pesticides Uses in Crop Production: What Can We Learn from French Farmers Practices?," 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania 103654, Agricultural and Applied Economics Association.
    13. Qian, Hang, 2009. "Estimating SUR Tobit Model while errors are gaussian scale mixtures: with an application to high frequency financial data," MPRA Paper 31509, University Library of Munich, Germany.
    14. Harald Tauchmann & Silja Lenz & Till Requate & Christoph Schmidt, 2013. "Tobacco and alcohol: complements or substitutes?," Empirical Economics, Springer, vol. 45(1), pages 539-566, August.
    15. Requate, Till & Göhlmann, Silja & Tauchmann, Harald & Schmidt, Christoph M., 2006. "Tobacco and alcohol: complements or substitutes? : a statistical Guinea Pig approach," Economics Working Papers 2006,18, Christian-Albrechts-University of Kiel, Department of Economics.
    16. Stewart, Hayden & Yen, Steven T., 2004. "Changing household characteristics and the away-from-home food market: a censored equation system approach," Food Policy, Elsevier, vol. 29(6), pages 643-658, December.

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