Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour
AbstractUsing aggregated panel data taken from three waves of the Indonesian Family Life Survey (1993–2000), this article tests the myopic addiction behaviour of cigarette demand. Sensitivity analysis is done by examining a rational addiction behavior of cigarette demand. The results provide support for myopic addiction. The short- and long-run price elasticities of cigarette demand are estimated at −0.28 and −0.73 respectively. Excise taxes are more likely to act as an effective tobacco control in the long-run rather than a major source of government revenue.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 30194.
Date of creation: 22 Mar 2010
Date of revision: 17 May 2010
Publication status: Published in International Journal of Environmental Research and Public Health 6.7(2010): pp. 2473-2485
cigarette consumption; myopic addictive models; methodology for panel data; Indonesia;
Find related papers by JEL classification:
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-04-16 (All new papers)
- NEP-HEA-2011-04-16 (Health Economics)
- NEP-MIC-2011-04-16 (Microeconomics)
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