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The Hazards of Starting and Quitting Smoking: Some Australian Evidence

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  • Michael P. Kidd
  • Sandra Hopkins

Abstract

The empirical analysis employs individual level data from the Australian Health Survey combined with retrospective data on tobacco price matched to the age at which the individual started and quit smoking. Split‐population hazard models are estimated for both starting and quitting smoking. The analysis suggests price plays a significant role in the decision to start smoking but not in the decision to quit. Further sensitivity analysis of different age groups and an alternative data source, questions the robustness of the significant role of price in the smoking initiation decision. From a policy perspective, the results indicate that increases in tobacco taxation can be an important instrument in reducing the incidence of smoking, but should be combined with other mechanisms such as mandating smoke‐free environments and antismoking education. Our results strongly support the targeting of antismoking campaigns towards teenagers.

Suggested Citation

  • Michael P. Kidd & Sandra Hopkins, 2004. "The Hazards of Starting and Quitting Smoking: Some Australian Evidence," The Economic Record, The Economic Society of Australia, vol. 80(249), pages 177-192, June.
  • Handle: RePEc:bla:ecorec:v:80:y:2004:i:249:p:177-192
    DOI: 10.1111/j.1475-4932.2004.00171.x
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    File URL: https://doi.org/10.1111/j.1475-4932.2004.00171.x
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    References listed on IDEAS

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    1. John A. Tauras & Frank J. Chaloupka, 1999. "Determinants of Smoking Cessation: An Analysis of Young Adult Men and Women," NBER Working Papers 7262, National Bureau of Economic Research, Inc.
    2. Martin Forster & Andrew M. Jones, 2001. "The role of tobacco taxes in starting and quitting smoking: Duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 164(3), pages 517-547.
    3. Martin Forster & Andrew M. Jones, 2003. "Corrigendum: The role of tobacco taxes in starting and quitting smoking: duration analysis of British data," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 166(3), pages 441-442, October.
    4. John A. Tauras, 1999. "The Transition to Smoking Cessation: Evidence from Multiple Failure Duration Analysis," NBER Working Papers 7412, National Bureau of Economic Research, Inc.
    5. Philip DeCicca & Donald Kenkel & Alan Mathios, 2002. "Putting Out the Fires: Will Higher Taxes Reduce the Onset of Youth Smoking?," Journal of Political Economy, University of Chicago Press, vol. 110(1), pages 144-169, February.
    6. Douglas, Stratford & Hariharan, Govind, 1994. "The hazard of starting smoking: Estimates from a split population duration model," Journal of Health Economics, Elsevier, vol. 13(2), pages 213-230, July.
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    Citations

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    Cited by:

    1. Rajeev Goel, 2007. "Costs of smoking and attempts to quit," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 853-857.
    2. Buddelmeyer, Hielke & Wilkins, Roger, 2005. "The Effects of Smoking Ban Regulations on Individual Smoking Rates," IZA Discussion Papers 1737, Institute of Labor Economics (IZA).
    3. van Ours, Jan C. & Williams, Jenny, 2007. "Cannabis prices and dynamics of cannabis use," Journal of Health Economics, Elsevier, vol. 26(3), pages 578-596, May.
    4. Sinclair Davidson & Ashton de Silva, 2018. "Did Recent Tobacco Reforms Change the Cigarette Market?," Economic Papers, The Economic Society of Australia, vol. 37(1), pages 55-74, March.
    5. G. Guindon, 2014. "The impact of tobacco prices on smoking onset in Vietnam: duration analyses of retrospective data," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 15(1), pages 19-39, January.
    6. Pierre Koning & Dinand Webbink & Nicholas Martin, 2015. "The effect of education on smoking behavior: new evidence from smoking durations of a sample of twins," Empirical Economics, Springer, vol. 48(4), pages 1479-1497, June.
    7. Jan C. van Ours, 2006. "Dynamics in the use of drugs," Health Economics, John Wiley & Sons, Ltd., vol. 15(12), pages 1283-1294, December.
    8. Seonghoon Hong & Alan R. Collins, 2010. "The Impact Of Antismoking Policies In Korea On Quit Success And Smoking Intentions," Contemporary Economic Policy, Western Economic Association International, vol. 28(4), pages 474-487, October.
    9. Jan (J.C.) van Ours & Ali Palali, 2017. "The Impact of Tobacco Control Policies on Smoking Initiation in Europe," Tinbergen Institute Discussion Papers 17-074/V, Tinbergen Institute.
    10. Moriizumi, Yoko & Naoi, Michio, 2011. "Unemployment risk and the timing of homeownership in Japan," Regional Science and Urban Economics, Elsevier, vol. 41(3), pages 227-235, May.
    11. G. Emmanuel Guindon & Guillermo R. Paraje & Ricardo Chávez, 2018. "Prices, Inflation, And Smoking Onset: The Case Of Argentina," Economic Inquiry, Western Economic Association International, vol. 56(1), pages 424-445, January.
    12. Palali, Ali & van Ours, Jan C., 2017. "The Impact of Tobacco Control Policies on Smoking Initiation in Europe," CEPR Discussion Papers 12201, C.E.P.R. Discussion Papers.
    13. Martin Gonzalez-Rozada & Giselle Montamat, 2015. "How increasing tobacco prices affects the decision to start and quit smoking: evidence from Argentina," Department of Economics Working Papers wp201501, Universidad Torcuato Di Tella.
    14. Anne Bretteville-Jensen, 2006. "Drug Demand – Initiation, Continuation and Quitting," De Economist, Springer, vol. 154(4), pages 491-516, December.
    15. Martin Gonzalez-Rozada & Giselle Montamat, 2015. "How increasing tobacco prices affects the decision to start and quit smoking: evidence from Argentina," Department of Economics Working Papers 2015_3, Universidad Torcuato Di Tella.
    16. Ali Palali & Jan C. Ours, 2019. "The impact of tobacco control policies on smoking initiation in eleven European countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 20(9), pages 1287-1301, December.
    17. Line Bretteville-Jensen, Anne & Biørn, Erik & Selmer, Randi, 2011. "Quitting behaviour of cigarette smokers. Are there direct effects of a screening program?," Memorandum 07/2011, Oslo University, Department of Economics.

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