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Estimating anticipated and nonanticipated demand elasticities for cigarettes in Spain

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  • José Escario
  • José Molina

Abstract

This paper will test whether tobacco consumption generates addiction in Spanish people. If this is the case, can such addiction be explained in the context of rational addiction theory? Elasticities are also obtained in the cases where price variations can be anticipated or, by contrast, where they cannot. The results first reveal the addictive and rational character of Spanish tobacco consumption. With respect to estimated demand elasticities, we find the expected results, namely that the anticipated values are higher than the nonanticipated values and that the long-run effects are also higher than the short-run effects. Copyright International Atlantic Economic Society 2000

Suggested Citation

  • José Escario & José Molina, 2000. "Estimating anticipated and nonanticipated demand elasticities for cigarettes in Spain," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 782-793, November.
  • Handle: RePEc:kap:iaecre:v:6:y:2000:i:4:p:782-793:10.1007/bf02295388
    DOI: 10.1007/BF02295388
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    References listed on IDEAS

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    1. Jose M. Labeaga, 1993. "Individual behaviour and tobacco consumption: A panel data approach," Health Economics, John Wiley & Sons, Ltd., vol. 2(2), pages 103-112, July.
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    5. Olekalns, Nilss & Bardsley, Peter, 1996. "Rational Addiction to Caffeine: An Analysis of Coffee Consumption," Journal of Political Economy, University of Chicago Press, vol. 104(5), pages 1100-1104, October.
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    7. Suranovic, Steven M. & Goldfarb, Robert S. & Leonard, Thomas C., 1999. "An economic theory of cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 1-29, January.
    8. Samuel Cameron, 1997. "Are Greek smokers rational addicts?," Applied Economics Letters, Taylor & Francis Journals, vol. 4(7), pages 401-402.
    9. Pollak, Robert A, 1970. "Habit Formation and Dynamic Demand Functions," Journal of Political Economy, University of Chicago Press, vol. 78(4), pages 745-763, Part I Ju.
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    Cited by:

    1. Molina, Jose Alberto & Campaña, Juan Carlos & Ortega, Raquel, 2015. "Time dedicated by consumers to cultural goods: Determinants for Spain," MPRA Paper 68430, University Library of Munich, Germany.
    2. Ferrando-Latorre, Sandra, 2017. "Risky consumption and intergenerational mobility: a research program in a family context," MPRA Paper 79777, University Library of Munich, Germany.
    3. José Alberto Molina & Juan Carlos Campaña & Raquel Ortega, 2016. "Time spent on cultural activities at home in Spain: Differences between wage-earners and the self-employed," Documentos de Trabajo dt2016-01, Facultad de Ciencias Económicas y Empresariales, Universidad de Zaragoza.
    4. Campaña, Juan Carlos, 2017. "¿Pueden llegar a ser adictivos los comportamientos juveniles sedentarios en el hogar? Un programa de investigación con respuestas conceptuales y evidencia empírica
      [Can sedentary youth behaviors be
      ," MPRA Paper 81401, University Library of Munich, Germany.
    5. Chung-Ping Loh & Chin-Shyan Chen & Tsai-Ching Liu, 2009. "Multiple Dimensions of Cigarette Smoking and Responsiveness to Cigarette Price Changes in Taiwan," Journal of Family and Economic Issues, Springer, vol. 30(2), pages 203-213, June.
    6. Molina, Jose Alberto & Campaña, Juan Carlos & Ortega, Raquel, 2015. "What do you prefer for a relaxing and cultural time at home: Reading, watching TV, or listening to the radio?," MPRA Paper 68454, University Library of Munich, Germany.

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