This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Addiction and Smoking Behaviour in Italy

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Silvia Tiezzi ()

Additional information is available for the following registered author(s):

Abstract

Since the end of the eighties the Becker and Murphy model of rational addiction has been the dominant approach to estimate addiction e ects. The main implication of the model is that public policy, in principle, should not interfere with a fully rational behaviour. However, the additional public health care costs smokers impose on non smokers could be internalised using price mechanisms, as the long run price elasticity of demand is supposed to be, according to this model, significantly higher than the short run one and higher than that obtained from alternative models of addiction, such as the habit persistence model. In this paper we estimate the demand for Tobacco and related products in Italy using PANEL data supplied by ISTAT for the twenty Italian regions. The rational addiction model is used to estimate addiction e ects following the methodological approach suggested by Baltagi and Levin (2001). The myopic addiction model is also estimated as an alternative way of modelling addiction e ects. These data seem to support the rational addiction model, although the results are not clearcut. We have thus estimated the same models using Time Series of per-capita Households Tobacco expenditures from the Italian National Accounts. In this case, the data strongly support the Rational Addiction model and produce elasticities in line with similar case studies.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.econ-pol.unisi.it/quaderni/412.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Department of Economics, University of Siena in its series Department of Economics University of Siena with number 412.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:usi:wpaper:412

Contact details of provider:
Postal: Piazza S.Francesco,7 - 53100 Siena
Phone: (39)(0577)298645
Fax: (39)(0577)298661
Email:
Web page: http://www.econ-pol.unisi.it/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (Fabrizio Becatti).

Related research
Keywords:

Find related papers by JEL classification:
D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Baltagi, Badi H & Griffin, James M, 2001. "The Econometrics of Rational Addiction: The Case of Cigarettes," Journal of Business & Economic Statistics, American Statistical Association, vol. 19(4), pages 449-54, October.
  2. Arellano, Manuel & Bond, Stephen, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Blackwell Publishing, vol. 58(2), pages 277-97, April. [Downloadable!] (restricted)
  3. Gary S.Grossman Becker & Michael Murphy & Kevin M., 1991. "Rational Addiction and the Effect of Price on Consumption," University of Chicago - George G. Stigler Center for Study of Economy and State 68, Chicago - Center for Study of Economy and State.
    Other versions:
  4. Baltagi, Badi H & Levin, Dan, 1986. "Estimating Dynamic Demand for Cigarettes Using Panel Data: The Effects of Bootlegging, Taxation and Advertising Reconsidered," The Review of Economics and Statistics, MIT Press, vol. 68(1), pages 148-55, February. [Downloadable!] (restricted)
  5. Cameron, Samuel, 1997. "Are Greek Smokers Rational Addicts?," Applied Economics Letters, Taylor and Francis Journals, vol. 4(7), pages 401-02, July. [Downloadable!] (restricted)
  6. Keane, Michael P & Runkle, David E, 1992. "On the Estimation of Panel-Data Models with Serial Correlation When Instruments Are Not Strictly Exogenous," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(1), pages 1-9, January.
  7. Baltagi, Badi H. & Levin, Dan, 1992. "Cigarette taxation: Raising revenues and reducing consumption," Structural Change and Economic Dynamics, Elsevier, vol. 3(2), pages 321-335, December. [Downloadable!] (restricted)
  8. Frank J. Chaloupka & Kenneth E. Warner, 1999. "The Economics of Smoking," NBER Working Papers 7047, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
    • Chaloupka, Frank J. & Warner, Kenneth E., 2000. "The economics of smoking," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 29, pages 1539-1627 Elsevier. [Downloadable!] (restricted)
  9. Jonathan Gruber & Botond Koszegi, 2000. "Is Addiction "Rational"? Theory and Evidence," NBER Working Papers 7507, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-63, Part I Ju. [Downloadable!] (restricted)
  11. Jones, Andrew & Mazzi, Margherita Giannoni, 1996. "Tobacco Consumption and Taxation in Italy: An Application of the QUAIDS Model," Applied Economics, Taylor and Francis Journals, vol. 28(5), pages 595-603, May. [Downloadable!] (restricted)
  12. Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1994. "An Empirical Analysis of Cigarette Addiction," NBER Working Papers 3322, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Grossman, Michael & Chaloupka, Frank J & Sirtalan, Ismail, 1998. "An Empirical Analysis of Alcohol Addiction: Results from the Monitoring the Future Panels," Economic Inquiry, Oxford University Press, vol. 36(1), pages 39-48, January.
    Other versions:
  14. Olekalns, Nilss & Bardsley, Peter, 1996. "Rational Addiction to Caffeine: An Analysis of Coffee Consumption," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1100-1104, October. [Downloadable!] (restricted)
    Other versions:
  15. Laux, Fritz L., 2000. "Addiction as a market failure: using rational addiction results to justify tobacco regulation," Journal of Health Economics, Elsevier, vol. 19(4), pages 421-437, July. [Downloadable!] (restricted)
  16. Grossman, Michael & Chaloupka, Frank J., 1998. "The demand for cocaine by young adults: a rational addiction approach," Journal of Health Economics, Elsevier, vol. 17(4), pages 427-474, August. [Downloadable!] (restricted)
    Other versions:
  17. Waters, Teresa M & Sloan, Frank A, 1995. "Why Do People Drink? Tests of the Rational Addiction Model," Applied Economics, Taylor and Francis Journals, vol. 27(8), pages 727-36, August.
  18. Frank J. Chaloupka, 1991. "Rational Addictive Behavior and Cigarette Smoking," NBER Working Papers 3268, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  19. Cameron, Samuel, 1999. "Rational Addiction and the Demand for Cinema," Applied Economics Letters, Taylor and Francis Journals, vol. 6(9), pages 617-20, September. [Downloadable!] (restricted)
  20. Bask, Mikael & Melkersson, Maria, 2000. "Rational Addiction when there are Two Addictive Goods: Cigarettes and Smokeless Tobacco," UmeÃ¥ Economic Studies 545, Umeå University, Department of Economics.
  21. Escario, Jose Julian & Molina, Jose Alberto, 2001. "Testing for the Rational Addiction Hypothesis in Spanish Tobacco Consumption," Applied Economics Letters, Taylor and Francis Journals, vol. 8(4), pages 211-15, April. [Downloadable!] (restricted)
  22. Becker, Gary S & Murphy, Kevin M, 1988. "A Theory of Rational Addiction," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 675-700, August. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Kaili Shen & David E. Giles, 2006. "Rational exuberance at the mall: addiction to carrying a credit card balance," Applied Economics, Taylor and Francis Journals, vol. 38(5), pages 587-592, March. [Downloadable!] (restricted)
    Other versions:
Statistics
Access and download statistics

Did you know? LogEc provides statistical analysis about downloads from this service (and others).

This page was last updated on 2009-12-1.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.