Impact of acute health shocks on cigarette consumption: A combined DiD-matching strategy to address endogeneity issues in the French Gazel panel data

This paper investigates the relationship between an acute health shock, namely the first onset of an accident requiring medical care, and cigarette consumption, using the French Gazel panel data. To identify the causal effect of such shocks, we use a difference-in-differences approach combined with a propensity score. Results suggest that there is a significant effect running from the shock to the number of cigarettes smoked with impact duration of eight years after the shock. Individuals subject to such a shock smoke, on average, 2 cigarettes less (per week) than those not exposed to such a shock. Further, the findings show heterogeneous effects among smokers: heavy smokers are more likely to reduce tobacco consumption than occasional smokers.