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Smoking Persistence in Europe: A Semi-Parametric Panel Data Analysis with Selectivity

Author

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  • Dimitris Christelis
  • Anna Sanz-de-Galdeano

Abstract

We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric panel data selection methods, applied to both the smoking participation and the cigarette consumption decision. We find that for both smoking decisions true state dependence is generally much smaller, but still important, when unobserved individual heterogeneity is accounted for. We uncover large differences in true state dependence across countries and relate them to discrepancies in regulations, social norms on and tolerance towards smoking, and awareness of its health risks.

Suggested Citation

  • Dimitris Christelis & Anna Sanz-de-Galdeano, 2009. "Smoking Persistence in Europe: A Semi-Parametric Panel Data Analysis with Selectivity," Working Papers 403, Barcelona Graduate School of Economics.
  • Handle: RePEc:bge:wpaper:403
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    smoking; panel data; State Dependence; selectivity;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C34 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Truncated and Censored Models; Switching Regression Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I10 - Health, Education, and Welfare - - Health - - - General
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior

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