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Structural Change in Cigarette Demand: Cusum Tests Using Panel Data

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Author Info

  • Schroeter, John R.
  • Fenn, Aju J.

Abstract

We conduct cusum tests of structural change in a rational addiction model of cigarette demand estimated using a panel of annual time series of state-level data. In contrast to the one previous application of cusum tests to the question of cigarette demand stability, our results provide strong evidence of downward shifts in demand during the modern era of health warnings and anti-smoking campaigns.

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Bibliographic Info

Paper provided by Iowa State University, Department of Economics in its series Staff General Research Papers with number 12425.

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Date of creation: 01 Sep 2005
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Publication status: Published in Economics Bulletin, September 2005, vol. 9, pp. 1-11
Handle: RePEc:isu:genres:12425

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Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070
Phone: +1 515.294.6741
Fax: +1 515.294.0221
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Web page: http://www.econ.iastate.edu
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