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A double-hurdle approach to modelling tobacco consumption in Italy

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  • David Aristei
  • Luca Pieroni

Abstract

This article analyzes the determinants of tobacco expenditures for a sample of Italian households. A Box-Cox double-hurdle model adjusted for heteroscedasticity is estimated to account for separate individual decisions concerning smoking participation and tobacco consumption and to correct for nonnormality in the bivariate distribution of the error terms. Nested univariate and bivariate models are found to be excessively restrictive, supporting the adequacy of a generalized specification. Estimation results show that consumption decisions are significantly affected by income and demographic characteristics. In particular, income positively impacts tobacco expenditure, while participation probability substantially declines as age increases. The existence of significant gender differences in both smoking participation and tobacco consumption patterns is found, while high education and white-collar occupation reduces the likelihood to smoke and tobacco expenditure levels. Single adult households have a lower probability of smoking initiation even if, conditional on smoking, they consume more. Finally, complementarity between tobacco and alcohol beverages suggests the necessity of joint public health strategies.

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Bibliographic Info

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

Volume (Year): 40 (2008)
Issue (Month): 19 ()
Pages: 2463-2476

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Handle: RePEc:taf:applec:v:40:y:2008:i:19:p:2463-2476

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Cited by:
  1. Halkos, George, 2012. "Assessing the economic value of protecting artificial lakes," MPRA Paper 39557, University Library of Munich, Germany.
  2. 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.
  3. Stefano Herzel, Stefano & Marco Nicolosi, Marco & Starica, Catalin, 2010. "The cost of sustainability on optimal portfolio choices," Sustainable Investment and Corporate Governance Working Papers 2010/15, Sustainable Investment Research Platform.
  4. David ARISTEI & Manuela Gallo, 2012. "The Drivers of Household Over-Indebtedness and Delinquency on Mortgage Loans: Evidence from Italian Microdata," Quaderni del Dipartimento di Economia, Finanza e Statistica 105/2012, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  5. Chiwaula, Levison/S, 2009. "Child labour and poverty linkages: A micro analysis from rural Malawian data," MPRA Paper 25915, University Library of Munich, Germany, revised Oct 2009.
  6. Brida, Juan Gabriel & Disegna, Marta & Scuderi, Raffaele, 2012. "Visitors of two types of museums: do expenditure patterns differ?," MPRA Paper 38841, University Library of Munich, Germany.
  7. Edoardo Di Porto, 2009. "Audit, tax compliance and undeclared work: an empirical analysis," LABORatorio R. Revelli Working Papers Series 94, LABORatorio R. Revelli, Centre for Employment Studies.
  8. David Aristei & Luca Pieroni, 2007. "Addiction, Social Interactions and Gender Differences in Cigarette Consumption," Working Papers 39, University of Verona, Department of Economics.
  9. Davide Castellani & Fabio Pieri, 2011. "Foreign Investments and Productivity Evidence from European Regions," Quaderni del Dipartimento di Economia, Finanza e Statistica 83/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  10. Silvia Micheli, 2010. "Learning Curve and Wind Power," Quaderni del Dipartimento di Economia, Finanza e Statistica 81/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  11. Mirella Damiani & Fabrizio Pompei & Andrea Ricci, 2011. "Temporary job protection and productivity growth in EU economies," Quaderni del Dipartimento di Economia, Finanza e Statistica 87/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  12. Mirella Damiani, 2010. "Labour regulation, corporate governance and varieties of capitalism," Quaderni del Dipartimento di Economia, Finanza e Statistica 76/2010, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  13. 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.
  14. Francesco Venturini, 2011. "Product variety, product quality, and evidence of Schumpeterian endogenous growth: a note," Quaderni del Dipartimento di Economia, Finanza e Statistica 93/2011, Università di Perugia, Dipartimento Economia, Finanza e Statistica.
  15. Mishra, Ashok K. & Williams, Robert P. & Detre, Joshua D., 2009. "Internet Access and Internet Purchasing Patterns of Farm Households," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 38(2), October.
  16. John Eakins, 2014. "An Application of the Double Hurdle Model to Petrol and Diesel Household Expenditures in Ireland," Surrey Energy Economics Centre (SEEC), School of Economics Discussion Papers (SEEDS) 145, Surrey Energy Economics Centre (SEEC), School of Economics, University of Surrey.
  17. Ramaele Moshoeshoe, 2012. "Consumer demand for alcoholic beverages and tobacco in Lesotho: A double-hurdle approach," Working Papers 315, Economic Research Southern Africa.
  18. 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.

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