Structural Change in Cigarette Demand: Cusum Tests Using Panel Data
We conduct cusum tests of structural change in a rational addiction model of cigarette demand estimated using a panel of annual time series of state-level data. In contrast to the one previous application of cusum tests to the question of cigarette demand stability, our results provide strong evidence of downward shifts in demand during the modern era of health warnings and anti-smoking campaigns.
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|Date of creation:||01 Sep 2005|
|Publication status:||Published in Economics Bulletin, September 2005, vol. 9, pp. 1-11|
|Contact details of provider:|| Postal: Iowa State University, Dept. of Economics, 260 Heady Hall, Ames, IA 50011-1070|
Phone: +1 515.294.6741
Fax: +1 515.294.0221
Web page: http://www.econ.iastate.edu
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- Gary S. Becker & Kevin M. Murphy, 1986. "A Theory of Rational Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 41, Chicago - Center for Study of Economy and State.
- Maskus, Keith E, 1983. "Evidence on Shifts in the Determinants of the Structure of U.S. Manufacturing Foreign Trade, 1958-76," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 415-422, August.
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