Cigarette smoking in Indonesia: examination of a myopic model of addictive behaviour
Using aggregated panel data taken from three waves of the Indonesian Family Life Survey (1993–2000), this article tests the myopic addiction behaviour of cigarette demand. Sensitivity analysis is done by examining a rational addiction behavior of cigarette demand. The results provide support for myopic addiction. The short- and long-run price elasticities of cigarette demand are estimated at −0.28 and −0.73 respectively. Excise taxes are more likely to act as an effective tobacco control in the long-run rather than a major source of government revenue.
|Date of creation:||22 Mar 2010|
|Date of revision:||17 May 2010|
|Publication status:||Published in International Journal of Environmental Research and Public Health 6.7(2010): pp. 2473-2485|
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NBER Working Papers
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