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Health risk and the decision to quit smoking

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  • Chee-Ruey Hsieh

Abstract

This study contributes to the understanding of the decision to quit smoking by taking into account the learning of new risk information. The specific hypothesis tested is that smokers learn new risk information and hence create an incentive to quit from their own experience. Probit models are estimated for the decision to quit smoking based on longitudinal data obtained from Taiwan. It is shown that health risk, measured by the observed change in health status over the period between two surveys, has a relatively substantial positive effect on the probability of quitting smoking. In addition, the results indicate that schooling has a significantly positive effect on the probability of quitting. These findings are consistent with the predictions of a Bayesian learning framework and suggest that the risk information obtained from individual experience, which is the sole source of information available to smokers in most developing countries, plays the same role that public information does.

Suggested Citation

  • Chee-Ruey Hsieh, 1998. "Health risk and the decision to quit smoking," Applied Economics, Taylor & Francis Journals, vol. 30(6), pages 795-804.
  • Handle: RePEc:taf:applec:v:30:y:1998:i:6:p:795-804
    DOI: 10.1080/000368498325499
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    Citations

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    Cited by:

    1. Hammar, Henrik & Carlsson, Fredrik, 2001. "Smokers' Decisions To Quit Smoking," Working Papers in Economics 59, University of Gothenburg, Department of Economics.
    2. Leonie Sundmacher, 2012. "The effect of health shocks on smoking and obesity," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(4), pages 451-460, August.
    3. Eiji Yamamura, 2014. "Smokers’ Sexual Behavior and Their Satisfaction with Family Life," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 118(3), pages 1229-1247, September.
    4. Kan, Kamhon, 2007. "Cigarette smoking and self-control," Journal of Health Economics, Elsevier, vol. 26(1), pages 61-81, January.
    5. Chen, Yu-Fu & Petrie, Dennis, 2012. "When to Quit Under Uncertainty? A real options approach to smoking cessation," SIRE Discussion Papers 2012-79, Scottish Institute for Research in Economics (SIRE).
    6. Lin, Tsui-Fang, 2008. "Modifiable health risk factors and medical expenditures - The case of Taiwan," Social Science & Medicine, Elsevier, vol. 67(11), pages 1727-1736, December.
    7. Ida, Takanori & Goto, Rei & Takahashi, Yuko & Nishimura, Shuzo, 2011. "Can economic-psychological parameters predict successful smoking cessation?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(3), pages 285-295, May.
    8. Christian Bünnings, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 0459, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    9. Rajeev Goel, 2015. "On the demand for smoking quitlines," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(1), pages 201-210, January.
    10. Cameron, Dr. Samuel, 2000. "Nicotine addiction and cigarette consumption: a psycho-economic model," Journal of Economic Behavior & Organization, Elsevier, vol. 41(3), pages 211-219, March.
    11. Bünnings, Christian, 2013. "Does New Health Information Affect Health Behavior? The Effect of Health Events on Smoking Cessation," Ruhr Economic Papers 459, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    12. Henrik Hammar & Fredrik Carlsson, 2005. "Smokers' expectations to quit smoking," Health Economics, John Wiley & Sons, Ltd., vol. 14(3), pages 257-267.
    13. Martin Forster & Andrew M. Jones, "undated". "The role of tobacco taxes in starting and quitting smoking," Discussion Papers 00/51, Department of Economics, University of York.
    14. Yen, Steven T. & Shaw, W. Douglass & Yuan, Yan, 2010. "Cigarette smoking and self-reported health in China," China Economic Review, Elsevier, vol. 21(4), pages 532-543, December.
    15. repec:zbw:rwirep:0459 is not listed on IDEAS
    16. Jie-Min Lee & Sheng-Hung Chen & Hsiang-Hsi Liu & Jung-Yao Hung & Mei-Yun Huang, 2010. "Effects Of Health Risk Information On Addictive Goods Consumption: A Case Of Tobacco, Alcohol, And Betel Nuts In Taiwan," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 406-413, July.
    17. Junmin Wan, 2004. "Cigarette Tax Revenues and Tobacco Control in Japan," Discussion Papers in Economics and Business 04-11-Rev, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP), revised Feb 2006.

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