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Individual behaviour and tobacco consumption: A panel data approach

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  • Jose M. Labeaga

Abstract

This paper considers estimators of tobacco demand equations using Becker and Murphy's model of addiction with a complete panel of households for Spain. With these tools, we face two main problems: first, the endogeneity of past and future consumption and, second, the limited‐dependent variable. To control these problems simultaneously is difficult and we proceed to confront them separately. We follow an instrumental variable approach (which also allows us to control for measurement errors in variables and non‐independent effects) to tackle the first and we use a consistent within‐group procedure to obtain the parameter vector of the structural form, once we have estimated T‐Tobit models for the reduced form in order to deal with the limited‐dependent variable problem.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:hlthec:v:2:y:1993:i:2:p:103-112
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    Cited by:

    1. David Aristei & Luca Pieroni, 2009. "Addiction, social interactions and gender differences in cigarette consumption," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 245-272, August.
    2. Pierani, P.; Tiezzi, S.;, 2017. "Rational addiction and time consistency:an empirical test," Health, Econometrics and Data Group (HEDG) Working Papers 17/05, HEDG, c/o Department of Economics, University of York.
    3. Jose Julian Escario & Jose Alberto Molina, 2001. "Testing for the rational addiction hypothesis in Spanish tobacco consumption," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 211-215.
    4. Christian Bantle & John P. Haisken-DeNew, 2002. "Smoke Signals: The Intergenerational Transmission of Smoking Behavior," Discussion Papers of DIW Berlin 277, DIW Berlin, German Institute for Economic Research.
    5. Yen, Steven T., 1997. "Cigarette Consumption by U.S. Men," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35799, Western Agricultural Economics Association.
    6. 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.
    7. repec:kap:iaecre:v:6:y:2000:i:4:p:782-793 is not listed on IDEAS
    8. Namkee Ahn & Josée Alberto Molina, "undated". "Smoking in Spain: Analysis of Initiation and Cessation," Working Papers 2001-02, FEDEA.
    9. Miura, Takahiro, 2019. "Does time preference affect smoking behavior? A dynamic panel analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 170-180.

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