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Do Health Changes Affect Smoking? Evidence from British Panel Data

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Author Info
Andrew Clark
Fabrice Etilé

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Abstract

This paper uses seven waves of British Household Panel Survey data to examine the link between health developments while smoking (both one's own and those of other smokers in the same household) and future cigarette consumption. We find those whose health worsens when smoking smoke less in the future, and are more likely to quit. This correlation is consistent with both a Grossman model of health demand (where all parameters are known) and with learning about the health consequences of smoking (where there is uncertainty). There is little effect on smoking from health developments amongst other smokers in the same household. As such, impersonal information provision may have less of an effect on smoking than the delivery of personalised health information, for example through the medical profession.

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Paper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 2001-16.

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Date of creation: 2001
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Publication status: Published in Journal of Health Economics, July 2002, 21, pp. 533-562
Handle: RePEc:del:abcdef:2001-16

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  1. Gallet, Craig & Agarwal, Rajshree, 1999. "The Gradual Response of Cigarette Demand to Health Information," Bulletin of Economic Research, Blackwell Publishing, vol. 51(3), pages 259-65, July.
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
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  4. Jones, Andrew M., 1994. "Health, addiction, social interaction and the decision to quit smoking," Journal of Health Economics, Elsevier, vol. 13(1), pages 93-110, March. [Downloadable!] (restricted)
  5. Gail Mitchell Hoyt & Frank J. Chaloupka, 1994. "Effect Of Survey Conditions On Self-Reported Substance Use," Contemporary Economic Policy, Western Economic Association International, vol. 12(3), pages 109-121, 07. [Downloadable!] (restricted)
  6. Jimenez-Martin, Sergi, 1998. "On the testing of heterogeneity effects in dynamic unbalanced panel data models," Economics Letters, Elsevier, vol. 58(2), pages 157-163, February. [Downloadable!] (restricted)
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  11. Chaloupka, Frank, 1991. "Rational Addictive Behavior and Cigarette Smoking," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 722-42, August. [Downloadable!] (restricted)
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  12. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal Of The Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547. [Downloadable!] (restricted)
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  13. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-63, Part I Ju. [Downloadable!] (restricted)
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  15. Fehr, Ernst & Zych, Peter K, 1998. " Do Addicts Behave Rationally?," Scandinavian Journal of Economics, Blackwell Publishing, vol. 100(3), pages 643-62, September. [Downloadable!] (restricted)
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  16. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1994. "An Empirical Analysis of Cigarette Addiction," NBER Working Papers 3322, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Bala, Venkatesh & Goyal, Sanjeev, 1998. "Learning from Neighbours," Review of Economic Studies, Blackwell Publishing, vol. 65(3), pages 595-621, July. [Downloadable!] (restricted)
  18. Ellison, Glenn & Fudenberg, Drew, 1995. "Word-of-Mouth Communication and Social Learning," The Quarterly Journal of Economics, MIT Press, vol. 110(1), pages 93-125, February. [Downloadable!] (restricted)
  19. Ried, Walter, 1998. "Comparative dynamic analysis of the full Grossman model," Journal of Health Economics, Elsevier, vol. 17(4), pages 383-425, August. [Downloadable!] (restricted)
  20. Suranovic, Steven M. & Goldfarb, Robert S. & Leonard, Thomas C., 1999. "An economic theory of cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 1-29, January. [Downloadable!] (restricted)
  21. Martin Forster & Andrew M. Jones, . "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York. [Downloadable!]
  22. Clark, Andrew E & Oswald, Andrew J, 1994. "Unhappiness and Unemployment," Economic Journal, Royal Economic Society, vol. 104(424), pages 648-59, May. [Downloadable!] (restricted)
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  24. Lanoie, Paul & Leclair, Paul, 1998. "Taxation or regulation:: Looking for a good anti-smoking policy," Economics Letters, Elsevier, vol. 58(1), pages 85-89, January. [Downloadable!] (restricted)
  25. 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. [Downloadable!] (restricted)
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  26. Douglas, Stratford & Hariharan, Govind, 1994. "The hazard of starting smoking: Estimates from a split population duration model," Journal of Health Economics, Elsevier, vol. 13(2), pages 213-230, July. [Downloadable!] (restricted)
Full references

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. Andrew Clark & Fabrice Etilé, 2003. "Don't Give up on me Baby: Spousal Correlation in Smoking Behaviour," DELTA Working Papers 2003-25, DELTA (Ecole normale supérieure). [Downloadable!]
    Other versions:
  2. Anna Sanz de Galdeano, 2007. "An Economic Analysis of Obesity in Europe: Health, Medical Care and Absenteeism Costs," Working Papers 2007-38, FEDEA. [Downloadable!]
  3. Junmin Wan, 2004. "Consumption of Cigarettes, Nicotine, and Tar under Anti-smoking Policies: Japan as a Case Study," Discussion Papers in Economics and Business 04-12-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Mar 2006. [Downloadable!]
  4. Alfonso Miranda & Massimiliano Bratti, 2006. "Non-Pecuniary Returns to Higher Education:," IZA Discussion Papers 2090, Institute for the Study of Labor (IZA). [Downloadable!]
  5. Andrew Clark & Fabrice Etilé, 2003. "Health Changes and Smoking: An Economic Analysis," DELTA Working Papers 2003-13, DELTA (Ecole normale supérieure). [Downloadable!]
  6. Gabriel Picone & Frank Sloan, 2003. "Smoking Cessation and Lifestyle Changes," Forum for Health Economics & Policy, Berkeley Electronic Press, vol. 6(1), pages 1048-1048. [Downloadable!] (restricted)
  7. Andrew E. Clark & Youenn Lohéac, 2005. ""It Wasn’t Me, It Was Them!" Social Influence in Risky Behavior by Adolescents," IZA Discussion Papers 1573, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  8. Andrew E. Clark & Youenn Loheac, 2003. "It wasn't me, It was them! A Study of Social Influence in Risky Behaviour by Adolescents," DELTA Working Papers 2003-01, DELTA (Ecole normale supérieure). [Downloadable!]
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