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An Analysis of Household's Tobacco Consumption Decisions : Evidence from India

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  • Rijo M John

    (Indira Gandhi Institute of Development Research)

Abstract

Tobacco products such as bidi and cigarette, both of which are smoked, cater to different kinds of households in India, and analyzing them separately may yield results that are useful for public policy. Hence, we analyze the consumption patterns, socio-economic distribution and the household choice of a variety of tobacco products across rural and urban India. Using a Multinomial Logit Model, we analyze the choice behavior of a household in deciding whether and which tobacco products to consume. Household level data from National Sample Survey in India for the year 1999-2000, which has information on 120,309 households, has been used for this purpose. We found that most forms of tobacco consumption are higher among socially disadvantaged and low-income groups in the country. Variables such as education, sex ratio, alcohol and pan consumption were found to be signifcant factors determining tobacco consumption habits of Indian households. The effect of some of the factors on the probability of consumption differs for certain types of tobacco products, increasing some, and decreasing others. Addictive goods such as alcohol and pan were found to be complimentary to tobacco consumption.

Suggested Citation

  • Rijo M John, 2004. "An Analysis of Household's Tobacco Consumption Decisions : Evidence from India," Microeconomics Working Papers 22393, East Asian Bureau of Economic Research.
    • Handle: RePEc:eab:microe:22393
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    References listed on IDEAS

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    1. Ray, Cecily Stewart & Gupta, Prakesh & de Beyer, Joy, 2003. "Research On Tobacco In India (Including Betel Quid And Areca Nut)," University of California at San Francisco, Center for Tobacco Control Research and Education qt8345469m, Center for Tobacco Control Research and Education, UC San Francisco.
    2. repec:ind:iegddp:47 is not listed on IDEAS
    3. Parke E. Wilde, 2000. "Deaton, Angus. The Analysis of Household Surveys: A Microeconometric Approach to Development Policy. Baltimore MD: Johns Hopkins University Press (Published for the World Bank), 1996, 479 pp., $39.95," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(3), pages 780-782.
    4. John, Rijo M., 2005. "Tobacco consumption patterns and its health implications in India," Health Policy, Elsevier, vol. 71(2), pages 213-222, February.
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    Cited by:

    1. Rijo M John, 2005. "Price Elasticity Estimates for Tobacco and Other Addictive Goods in India," Microeconomics Working Papers 22395, East Asian Bureau of Economic Research.

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    More about this item

    Keywords

    Tobacco; Bidi; Cigarette; consumption; Multinomial Logit; India;
    All these keywords.

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • R20 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - General

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