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Do Smokers Respond to Health Shocks?

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  • Smith, V. Kerry
  • Taylor, Donald H., Jr.
  • Sloan, Frank A.
  • Johnson, F. Reed
  • Desvousges, William H.

Abstract

This paper reports the first test of how exogenous health shocks impact people's longevity expectations. The analysis exploits the panel structure of the Health and Retirement Study and tests whether smokers, former smokers and those who never smoked react differently to serious, smoking related health shocks. The results support the conclusion that smokers have a different risk perception process. Smokers were only sensitive to their own smoking related illnesses while former smokers and those who never smoked react to a wider range of health related signals. These findings, along with related research on how smokers react to information messages, suggest that generalized messages about the hazards of smoking may be less effective than information about personal activity restrictions associated with smoking related diseases.

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Bibliographic Info

Paper provided by Duke University, Department of Economics in its series Working Papers with number 00-08.

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Date of creation: 2000
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Handle: RePEc:duk:dukeec:00-08

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Postal: Department of Economics Duke University 213 Social Sciences Building Box 90097 Durham, NC 27708-0097
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Fax: (919) 684-8974
Web page: http://econ.duke.edu/

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