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How Costly Are Smokers to Other People? Longitudinal Evidence on the Near Elderly


  • Picone Gabriel

    (University of South Florida)

  • Sloan Frank

    (Duke University and NBER)


Many studies have estimated the cost of smoking. In recent years, such estimates have been widely used in litigation against the tobacco companies. Both longitudinal and cross-sectional methods have been used. On balance, the longitudinal approach, the one used in this study, is much preferable since one can account for the effects of smoking on the pool of eligibles rather than just conditioning expenditures on being eligible. We used data from four waves of the Health and Retirement Study to assess the impact of smoking on use of hospital and physicians services and nursing home care. The analysis was limited to utilization among persons aged 51 to 67 (near elderly ). During this phase of the life cycle, many adverse effects of smoking, measured in terms of mortality and morbidity,

Suggested Citation

  • Picone Gabriel & Sloan Frank, 2001. "How Costly Are Smokers to Other People? Longitudinal Evidence on the Near Elderly," Forum for Health Economics & Policy, De Gruyter, vol. 4(1), pages 1-31, January.
  • Handle: RePEc:bpj:fhecpo:v:4:y:2001:n:2

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    References listed on IDEAS

    1. Moore Michael J. & Hughes James W., 2001. "The Health Care Consequences of Smoking and Its Regulation," Forum for Health Economics & Policy, De Gruyter, vol. 4(1), pages 1-48, January.
    2. Janet Currie & Aaron S. Yelowitz, 1999. "Health Insurance and Less Skilled Workers," JCPR Working Papers 63, Northwestern University/University of Chicago Joint Center for Poverty Research.
    3. Leu, Robert E. & Schaub, Thomas, 1985. "More on the impact of smoking on medical care expenditures," Social Science & Medicine, Elsevier, vol. 21(7), pages 825-827, January.
    4. Jones, Andrew M., 1996. "Smoking cessation and health: A response," Journal of Health Economics, Elsevier, vol. 15(6), pages 755-759, December.
    5. Robert B. Barsky & F. Thomas Juster & Miles S. Kimball & Matthew D. Shapiro, 1997. "Preference Parameters and Behavioral Heterogeneity: An Experimental Approach in the Health and Retirement Study," The Quarterly Journal of Economics, Oxford University Press, vol. 112(2), pages 537-579.
    6. Joni Hersch & W. Kip Viscusi, 1990. "Cigarette Smoking, Seatbelt Use, and Differences in Wage-Risk Tradeoffs," Journal of Human Resources, University of Wisconsin Press, vol. 25(2), pages 202-227.
    7. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    8. Phillip B. Levine & Tara A. Gustafson & Ann D. Velenchik, 1995. "More Bad News for Smokers? The Effects of Cigarette Smoking on Labor Market Outcomes," NBER Working Papers 5270, National Bureau of Economic Research, Inc.
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