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Effects Of Health Risk Information On Addictive Goods Consumption: A Case Of Tobacco, Alcohol, And Betel Nuts In Taiwan

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Listed:
  • JIE‐MIN LEE
  • SHENG‐HUNG CHEN
  • HSIANG‐HSI LIU
  • JUNG‐YAO HUNG
  • MEI‐YUN HUANG

Abstract

This paper empirically investigates the relationship between the dissemination of information about the health risks of tobacco, alcohol, and betel nuts and their consumption in Taiwan. To estimate cross‐elasticities, the paper uses the Central Bureau of Statistics demand system model. Empirical results indicate that an increase in the dissemination of information on the health risks of tobacco, alcohol, and betel nuts substantially reduces real consumption. Empirical evidence from the cross‐elasticity of price also confirms that a complementary relationship exists in Taiwan among these three addictive products. (JEL D12, Q11, H26)

Suggested Citation

  • Jie‐Min Lee & Sheng‐Hung Chen & Hsiang‐Hsi Liu & Jung‐Yao Hung & Mei‐Yun Huang, 2010. "Effects Of Health Risk Information On Addictive Goods Consumption: A Case Of Tobacco, Alcohol, And Betel Nuts In Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 406-413, July.
    • Handle: RePEc:bla:coecpo:v:28:y:2010:i:3:p:406-413
    DOI: 10.1111/j.1465-7287.2009.00178.x
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance

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