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The Trade-off Between Household Expenditures and Smoking Expenditure: Pre and Post Smoking Awareness Ordinance in Pakistan

Author

Listed:
  • Ali Basit
  • Irfan Muhammad

    (Department of Economics, COMSATS University Islamabad, Park Road, Tarlai, Islamabad 45550, Pakistan)

Abstract

The Government of Pakistan introduced smoking ordinance about health warning in 2009. This ordinance exhibits, prohibit smoking in public places, put restrictions on advertisements, and prohibits sale of cigarettes to minors. This study is to find out the impact of smoking expenditures on food, health, educational, recreational, and electronic expenditures using HIES dataset for 2010–11 and 2015–16. The findings show that share of food and health expenditure increase by 91 and 92% respectively. On the other hand, education and recreation expenditure decrease by 6 and 98% respectively. This is further verified using SUEST test to compare two datasets regressions. The result reveals that food, health, and recreational coefficient are statistically different while education and electronics expenditure remain similar.

Suggested Citation

  • Ali Basit & Irfan Muhammad, 2020. "The Trade-off Between Household Expenditures and Smoking Expenditure: Pre and Post Smoking Awareness Ordinance in Pakistan," Asian Journal of Law and Economics, De Gruyter, vol. 11(3), pages 1-21, December.
    • Handle: RePEc:bpj:ajlecn:v:11:y:2020:i:3:p:21:n:1
    DOI: 10.1515/ajle-2020-0037
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    References listed on IDEAS

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    1. Tingting Yao & Hai-Yen Sung & Zhengzhong Mao & Teh-wei Hu & Wendy Max, 2016. "The Healthcare Costs of Secondhand Smoke Exposure in Rural China," World Scientific Book Chapters, in: Teh-wei Hu (ed.), Economics of Tobacco Control in China From Policy Research to Practice, chapter 4, pages 43-57, World Scientific Publishing Co. Pte. Ltd..
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