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The Demand for Vices in Malaysia: An Ethnic Comparison Using Household Expenditure Data

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  • Andrew Tan

    ()

  • Steven Yen

    ()

  • Rodolfo Nayga

    ()

Abstract

A trivariate Tobit system is estimated to investigate the demand for vices (tobacco, alcohol, and gambling) in Malaysia. Estimation results, segmented by ethnicity, suggest that years of formal education, occupation type, and household head’s age negatively affect both the likelihood to spend and the overall amounts spent on tobacco by all Malaysians. Additionally, while higher income Malay households are more likely to spend and have higher tobacco expenditures, affluent Chinese and households of other races are more likely to spend and to spend more on smoking, drinking and gambling. Male-headed households of all races are more likely to spend and also spend more on smoking, drinking and gambling than female-led households. Copyright International Atlantic Economic Society 2009

Suggested Citation

  • Andrew Tan & Steven Yen & Rodolfo Nayga, 2009. "The Demand for Vices in Malaysia: An Ethnic Comparison Using Household Expenditure Data," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 37(4), pages 367-382, December.
  • Handle: RePEc:kap:atlecj:v:37:y:2009:i:4:p:367-382 DOI: 10.1007/s11293-009-9194-6
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    References listed on IDEAS

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    1. Wales, T. J. & Woodland, A. D., 1983. "Estimation of consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 21(3), pages 263-285, April.
    2. Thomas Garrett, 2001. "An International Comparison and Analysis of Lotteries and the Distribution of Lottery Expenditures," International Review of Applied Economics, Taylor & Francis Journals, vol. 15(2), pages 213-227.
    3. Steven T. Yen, 2005. "A Multivariate Sample-Selection Model: Estimating Cigarette and Alcohol Demands with Zero Observations," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(2), pages 453-466.
    4. Rodolfo Nayga, 1999. "A Note on Schooling and Smoking: the issue revisited," Education Economics, Taylor & Francis Journals, vol. 7(3), pages 253-258.
    5. Amemiya, Takeshi, 1974. "Multivariate Regression and Simultaneous Equation Models when the Dependent Variables Are Truncated Normal," Econometrica, Econometric Society, vol. 42(6), pages 999-1012, November.
    6. Steven Yen, 2005. "Zero observations and gender differences in cigarette consumption," Applied Economics, Taylor & Francis Journals, vol. 37(16), pages 1839-1849.
    7. Ransom, Michael R., 1987. "A comment on consumer demand systems with binding non-negativity constraints," Journal of Econometrics, Elsevier, vol. 34(3), pages 355-359, March.
    8. Yen, Steven, 1994. "Cross-Section Estimation of US Demand for Alcoholic Beverage," Staff General Research Papers Archive 761, Iowa State University, Department of Economics.
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    More about this item

    Keywords

    Demand for vices; Trivariate Tobit; Malaysia; D10;

    JEL classification:

    • D10 - Microeconomics - - Household Behavior - - - General

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