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Zero observations and gender differences in cigarette consumption

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  • Steven Yen
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    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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    Bibliographic Info

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

    Volume (Year): 37 (2005)
    Issue (Month): 16 ()
    Pages: 1839-1849

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    Handle: RePEc:taf:applec:v:37:y:2005:i:16:p:1839-1849

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    1. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August.
    2. 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.
    3. 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.
    4. Frank J. Chaloupka, 1990. "Rational Addictive Behavior and Cigarette Smoking," NBER Working Papers 3268, National Bureau of Economic Research, Inc.
    5. James Tobin, 1956. "Estimation of Relationships for Limited Dependent Variables," Cowles Foundation Discussion Papers 3R, Cowles Foundation for Research in Economics, Yale University.
    6. 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.
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    Cited by:
    1. Feng Zhang & Chung L. Huang & Biing-Hwan Lin & James E. Epperson, 2008. "Modeling fresh organic produce consumption with scanner data: a generalized double hurdle model approach," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 510-522.
    2. Sinning, Mathias, 2007. "Determinants of Savings and Remittances: Empirical Evidence from Immigrants to Germany," IZA Discussion Papers 2966, Institute for the Study of Labor (IZA).
    3. Xiaohua Yu & David Abler, 2010. "Interactions between cigarette and alcohol consumption in rural China," The European Journal of Health Economics, Springer, vol. 11(2), pages 151-160, April.
    4. Lundborg, Petter & Andersson, Henrik, 2007. "Gender, risk perceptions, and smoking behavior," Working Papers 2007:5, Swedish National Road & Transport Research Institute (VTI).
    5. Mathias Sinning & Silja Göhlmann & Thomas Bauer, 2006. "Gender Differences in Smoking Behavior," RWI Discussion Papers 0044, Rheinisch-Westfälisches Institut für Wirtschaftsforschung.
    6. David Aristei & Luca Pieroni, 2007. "Addiction, Social Interactions and Gender Differences in Cigarette Consumption," Working Papers 39, University of Verona, Department of Economics.
    7. 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.
    8. Andrew Tan & Steven Yen & Rodolfo Nayga, 2009. "The Demand for Vices in Malaysia: An Ethnic Comparison Using Household Expenditure Data," Atlantic Economic Journal, International Atlantic Economic Society, vol. 37(4), pages 367-382, December.
    9. Cihat Günden & Abdulbaki Bilgic & Bülent Miran & Bahri Karli, 2011. "A censored system of demand analysis to unpacked and prepackaged milk consumption in Turkey," Quality & Quantity: International Journal of Methodology, Springer, vol. 45(6), pages 1273-1290, October.
    10. Bilgic, Abdulbaki & Florkowski, Wojciech J. & Yen, Steven T. & Akbay, Cuma, 2013. "Tobacco spending patterns and their health-related implications in Turkey," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 1-15.
    11. Frank Crowley & John Eakins & Declan Jordan, 2012. "Participation,Expenditure and Regressivity in the Irish Lottery:Evidence from Irish Household Budget Survey 2004/2005," The Economic and Social Review, Economic and Social Studies, vol. 43(2), pages 199–225.
    12. Kilic, Dilek & Ozturk, Selcen, 2014. "Gender differences in cigarette consumption in Turkey: Evidence from the Global Adult Tobacco Survey," Health Policy, Elsevier, vol. 114(2), pages 207-214.

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