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

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We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric panel data selection methods, applied to both the smoking participation and the cigarette consumption decision. We find that for both smoking decisions true state dependence is generally much smaller, but still important, when unobserved individual heterogeneity is taken into account. We also uncover large differences in true state dependence across countries and relate these differences to discrepancies in smoking regulations, social norms on and tolerance towards smoking behaviour, and awareness of the health risks associated with smoking.

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Paper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 236.

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Date of creation: 01 Sep 2009
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Handle: RePEc:sef:csefwp:236

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Keywords: smoking; panel data; selectivity;

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Cited by:
  1. Andrew Jones & Audrey Laporte & Nigel Rice & Eugenio Zucchelli, 2014. "A Synthesis of the Grossman and Becker-Murphy Models of Health and Addiction: Theoretical and Empirical Implications," Working Papers 140007, Canadian Centre for Health Economics.
  2. 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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