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 yearly consumption in the 69 Italian provinces from 1871 to 1913, and use it 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 aggregate tobacco comprises (fine-cut tobacco, snuff, cigars, and cigarettes), and tentatively suggest that habit formation was a stronger factor on the persistence of consumption than physical addiction. The paper ends by showing that the introduction of the Bonsack 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 C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 9197.
Date of creation: Oct 2012
Date of revision:
Contact details of provider:
Postal: Centre for Economic Policy Research, 77 Bastwick Street, London EC1V 3PZ
Phone: 44 - 20 - 7183 8801
Fax: 44 - 20 - 7183 8820
Other versions of this item:
- 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.
- Carlo Ciccarelli & Gianni De Fraja, 2014. "The Demand for Tobacco in Post-Unification Italy," Quaderni di storia economica (Economic History Working Papers) 31, Bank of Italy, Economic Research and International Relations Area.
- D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- N33 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: Pre-1913
This paper has been announced in the following NEP Reports:
- NEP-AGR-2012-11-11 (Agricultural Economics)
- NEP-ALL-2012-11-11 (All new papers)
- NEP-HEA-2012-11-11 (Health Economics)
- NEP-HIS-2012-11-11 (Business, Economic & Financial History)
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
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.