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|
|Date of revision:|
|Publication status:||Published in Economics Bulletin, September 2005, vol. 9, pp. 1-11|
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- Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990.
"An Empirical Analysis of Cigarette Addiction,"
NBER Working Papers
3322, National Bureau of Economic Research, Inc.
- Gary S. Becker & Michael Grossman & Kevin M. Murphy, 1990. "An Empirical Analysis of Cigarette Addiction," University of Chicago - George G. Stigler Center for Study of Economy and State 61, Chicago - Center for Study of Economy and State.
- Hamilton, James L, 1972. "The Demand for Cigarettes: Advertising, the Health Scare, and the Cigarette Advertising Ban," The Review of Economics and Statistics, MIT Press, vol. 54(4), pages 401-11, November.
- Fenn, Aju J. & Antonovitz, Frances & Schroeter, John R., 2001.
"Cigarettes and addiction information: new evidence in support of the rational addiction model,"
Elsevier, vol. 72(1), pages 39-45, July.
- Fenn, Aju J. & Antonovitz, Frances A. & Schroeter, John R., 2001. "Cigarettes and Addiction Information: New Evidence in Support of the Rational Addiction Model," Staff General Research Papers 5117, Iowa State University, Department of Economics.
- Han, Aaron K & Park, Daekeun, 1989. "Testing for Structural Change in Panel Data: Application to a Study of U.S. Foreign Trade in Manufacturing Goods," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 135-42, February.
- Dufour, Jean-Marie, 1982. "Recursive stability analysis of linear regression relationships: An exploratory methodology," Journal of Econometrics, Elsevier, vol. 19(1), pages 31-76, May.
- Gallet, Craig & Agarwal, Rajshree, 1999. "The Gradual Response of Cigarette Demand to Health Information," Bulletin of Economic Research, Wiley Blackwell, vol. 51(3), pages 259-65, July.
- 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 415-22, August.
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