The Demand for Tobacco in Post-Unification Italy
AbstractThis paper studies the demand for tobacco products in post-unification Italy. We construct a very detailed panel dataset of annual consumption in the 69 Italian provinces from 1871 to 1913, which is then used to estimate the demand for tobacco products. We find support for the Becker and Murphy (1988) rational addiction model. We also find that, in the period considered, tobacco was a normal good in Italy: aggregate tobacco consumption increased with income. Subsequently, we consider separately the four types of products which comprise aggregate tobacco (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor in the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack cigarette rolling machine in the early 1890s did not coincide with changes in the structure of the demand for tobacco, suggesting cost-driven technological change.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bank of Italy, Economic Research and International Relations Area in its series Quaderni di storia economica (Economic History Working Papers) with number 31.
Date of creation: Jan 2014
Date of revision:
smoking; Italian Kingdom; rational addiction; panel data;
Other versions of this item:
- Carlo Ciccarelli & Gianni De Fraja, 2014. "The demand for tobacco in post-unification Italy," Cliometrica, Journal of Historical Economics and Econometric History, Association Française de Cliométrie (AFC), vol. 8(2), pages 145-171, May.
- Carlo Ciccarelli & Gianni De Fraja, 2012. "The Demand for Tobacco in Post-Unification Italy," Discussion Papers in Economics 12/13, Department of Economics, University of Leicester.
- Ciccarelli, Carlo & De Fraja, Gianni, 2012. "The Demand for Tobacco in Post-Unification Italy," CEPR Discussion Papers 9197, C.E.P.R. Discussion Papers.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-02-02 (All new papers)
- NEP-HEA-2014-02-02 (Health Economics)
- NEP-HIS-2014-02-02 (Business, Economic & Financial History)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Carlo Ciccarelli & Anna Missiaia, 2014. "Business Fluctuations in Imperial Austria's Regions, 1867-1913: New Evidence," CEIS Research Paper 312, Tor Vergata University, CEIS, revised 11 Apr 2014.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.