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Zero observations and gender differences in cigarette consumption

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Author Info
Steven T. Yen
Abstract

Censoring mechanisms and gender differences are investigated for cigarette consumption by individuals in the USA. The Gaussian single-hurdle model is proposed which generalizes the specifications of Cragg (1971) and Heckman (1979) and allows examination of the empirical relevance of the two censoring mechanisms in the existing double-hurdle model. The proposed model performs better than Cragg's and Heckman's models but not as well as the double-hurdle model and also produces different elasticity estimates. The hypothesis of equal consumption parameters is rejected and demand elasticities found to differ between men and women. Income does not play a role and age has conflicting effects on the probability and level of cigarette smoking. Older individuals are less likely to smoke but, conditional on smoking, consume more cigarettes than their younger counterparts. Education has negative effects on the probability and level of smoking and can be an effective tool to curtail cigarette smoking.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Applied Economics.

Volume (Year): 37 (2005)
Issue (Month): 16 (September)
Pages: 1839-1849
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Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1839-1849

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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.:

  1. Andrew M Jones, 1995. "A microeconometric analysis of smoking in the UK health and lifestyle survey," Working Papers 139chedp, Centre for Health Economics, University of York. [Downloadable!]
  2. Labeaga, Jose M., 1999. "A double-hurdle rational addiction model with heterogeneity: Estimating the demand for tobacco," Journal of Econometrics, Elsevier, vol. 93(1), pages 49-72, November. [Downloadable!] (restricted)
  3. 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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  4. Fry, Vanessa & Pashardes, Panos, 1994. "Abstention and Aggregation in Consumer Demand: Zero Tobacco Expenditures," Oxford Economic Papers, Oxford University Press, vol. 46(3), pages 502-18, July. [Downloadable!] (restricted)
  5. Frank J. Chaloupka, 1991. "Rational Addictive Behavior and Cigarette Smoking," NBER Working Papers 3268, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation, Yale University. [Downloadable!]
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Cited by:
(explanations, 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.)

  1. Mathias Sinning, 2007. "Determinants of Savings and Remittances: Empirical Evidence from Immigrants to Germany," IZA Discussion Papers 2966, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  2. Thomas Bauer & Silja Göhlmann & Mathias Sinning, 2007. "Gender differences in smoking behavior," Health Economics, John Wiley & Sons, Ltd., vol. 16(9), pages 895-909. [Downloadable!]
    Other versions:
  3. David Aristei & Luca Pieroni, 2007. "Addiction, Social Interactions and Gender Differences in Cigarette Consumption," Working Papers 39, Università di Verona, Dipartimento di Scienze economiche. [Downloadable!]
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  4. David Aristei & Luca Pieroni, 2007. "A Double-Hurdle Approach to Modelling Tobacco Consumption in Italy," Quaderni del Dipartimento di Economia, Finanza e Statistica 29/2007, Università di Perugia, Dipartimento Economia, Finanza e Statistica. [Downloadable!]
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