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Smoking Persistence Across Countries: An Analysis Using Semi-Parametric Dynamic Panel Data Models with Selectivity

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Author Info

  • Christelis, Dimitris

    ()
    (University of Naples Federico II)

  • Sanz-de-Galdeano, Anna

    ()
    (Universitat Autònoma de Barcelona)

Abstract

We study smoking persistence in ten countries using data from the European Community Household Panel. Such persistence may be due to true state dependence but may also reflect individual unobserved heterogeneity. We distinguish between the two by using semi-parametric dynamic panel data methods applied to both the decision to smoke or not and to the decision on the number of cigarettes smoked. Our model allows for correlation of the two time-varying error terms, i.e. for selectivity. We find that for both smoking decisions true state dependence is in general much smaller when unobserved individual heterogeneity is taken into account, and we also uncover large differences in true state dependence across countries. Finally, we find that taking into account heaping in the reported number of cigarettes smoked considerably improves the fit of our model.

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4336.

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Length: 47 pages
Date of creation: Jul 2009
Date of revision:
Handle: RePEc:iza:izadps:dp4336

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Keywords: smoking; selectivity; panel data;

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References

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  1. David M. Cutler & Edward L. Glaeser, 2006. "Why Do Europeans Smoke More than Americans?," NBER Working Papers 12124, National Bureau of Economic Research, Inc.
  2. Pierre‐Carl Michaud & Konstantinos Tatsiramos, 2011. "Fertility and female employment dynamics in Europe: the effect of using alternative econometric modeling assumptions," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 641-668, 06.
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Cited by:
  1. Maria L. Loureiro & Anna Sanz-de-Galdeano & Daniela Vuri, 2009. "Smoking Habits: Like Father, Like Son, Like Mother, Like Daughter," CESifo Working Paper Series 2782, CESifo Group Munich.

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