IDEAS home Printed from https://ideas.repec.org/a/plo/pone00/0222000.html
   My bibliography  Save this article

The effect of tobacco expenditure on expenditure shares in South African households: A genetic matching approach

Author

Listed:
  • Grieve Chelwa
  • Steven F Koch

Abstract

This paper examines whether tobacco expenditure leads to the crowding out or crowding in of different expenditure items in South Africa. We apply genetic matching to expenditure quartiles of the 2010/2011 South African Income and Expenditure Survey. Genetic matching is a more appealing approach for dealing with the endogeneity of tobacco expenditure that often plagues studies using systems of demand equations. Further, genetic matching provides transparent measures of covariate balance giving the analyst objective means of assessing match success. We find that the poorest tobacco consuming households in South Africa consistently allocate smaller budget shares towards food items than non-smoking households. Specifically, we find that dairy, fruits, nuts and oils are displaced in favour of tobacco expenditure in the two poorest quartiles. Unsurprisingly, food items are never displaced for households in the top two quartiles, given these households’ greater access to resources. Like other studies in the literature, we find that tobacco expenditure consistently crowds-in alcohol across all quartiles confirming the strong complementarities between the two.

Suggested Citation

  • Grieve Chelwa & Steven F Koch, 2019. "The effect of tobacco expenditure on expenditure shares in South African households: A genetic matching approach," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-16, September.
    • Handle: RePEc:plo:pone00:0222000
    DOI: 10.1371/journal.pone.0222000
    as

    Download full text from publisher

    File URL: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0222000
    Download Restriction: no
    File URL: https://journals.plos.org/plosone/article/file?id=10.1371/journal.pone.0222000&type=printable
    Download Restriction: no
    File URL: https://libkey.io/10.1371/journal.pone.0222000?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Muhammad Jami Husain & Biplab Kumar Datta & Mandeep K Virk-Baker & Mark Parascandola & Bazlul Haque Khondker, 2018. "The crowding-out effect of tobacco expenditure on household spending patterns in Bangladesh," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-15, October.
    2. Steven Block & Patrick Webb, 2009. "Up in Smoke: Tobacco Use, Expenditure on Food, and Child Malnutrition in Developing Countries," Economic Development and Cultural Change, University of Chicago Press, vol. 58(1), pages 1-23, October.
    3. John, Rijo M., 2008. "Crowding out effect of tobacco expenditure and its implications on household resource allocation in India," Social Science & Medicine, Elsevier, vol. 66(6), pages 1356-1367, March.
    4. Alexis Diamond & Jasjeet S. Sekhon, 2013. "Genetic Matching for Estimating Causal Effects: A General Multivariate Matching Method for Achieving Balance in Observational Studies," The Review of Economics and Statistics, MIT Press, vol. 95(3), pages 932-945, July.
    5. Pu, Cheng-yun & Lan, Virginia & Chou, Yiing-Jenq & Lan, Chung-fu, 2008. "The crowding-out effects of tobacco and alcohol where expenditure shares are low: Analyzing expenditure data for Taiwan," Social Science & Medicine, Elsevier, vol. 66(9), pages 1979-1989, May.
    6. Frederic Vermeulen, 2003. "Do smokers behave differently? A tale of zero expenditures and separability concepts," Economics Bulletin, AccessEcon, vol. 4(6), pages 1-7.
    7. Grieve Chelwa, 2014. "Assessing the Causal Impact of Tobacco Expenditure on Household Spending Patterns in Zambia," Working Papers 453, Economic Research Southern Africa.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nyagwachi, Abel Otwori & Chelwa, Grieve & van Walbeek, Corné, 2020. "The effect of tobacco- and alcohol-control policies on household spending patterns in Kenya: An approach using matched difference in differences," Social Science & Medicine, Elsevier, vol. 256(C).
    2. Nomusa Yolanda Nkomo & Mduduzi Biyase & Beatrice D. Simo-Kengne, 2023. "The Effects of Inequality on the Substitution of Essential Goods for Tobacco Smoking in South Africa," Economies, MDPI, vol. 11(6), pages 1-23, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaya Jumrani & P. S. Birthal, 2017. "Does consumption of tobacco and alcohol affect household food security? Evidence from rural India," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 9(2), pages 255-279, April.
    2. Steven F. Koch & Gauthier Tshiswaka-Kashalala, 2008. "Tobacco Substitution and the Poor," Working Papers 200832, University of Pretoria, Department of Economics.
    3. Koch, Steven F., 2018. "Quasi-experimental evidence on tobacco tax regressivity," Social Science & Medicine, Elsevier, vol. 196(C), pages 19-28.
    4. Wu, Daphne C. & Shannon, Geordan & Reynales-Shigematsu, Luz Myriam & Saenz de Miera, Belen & Llorente, Blanca & Jha, Prabhat, 2021. "Implications of household tobacco and alcohol use on child health and women's welfare in six low and middle-income countries: An analysis from a gender perspective," Social Science & Medicine, Elsevier, vol. 281(C).
    5. Nyagwachi, Abel Otwori & Chelwa, Grieve & van Walbeek, Corné, 2020. "The effect of tobacco- and alcohol-control policies on household spending patterns in Kenya: An approach using matched difference in differences," Social Science & Medicine, Elsevier, vol. 256(C).
    6. Nomusa Yolanda Nkomo & Mduduzi Biyase & Beatrice D. Simo-Kengne, 2023. "The Effects of Inequality on the Substitution of Essential Goods for Tobacco Smoking in South Africa," Economies, MDPI, vol. 11(6), pages 1-23, May.
    7. Jin, Hyun Joung & Cho, Sung Min, 2021. "Effects of cigarette price increase on fresh food expenditures of low-income South Korean households that spend relatively more on cigarettes," Health Policy, Elsevier, vol. 125(1), pages 75-82.
    8. Gallego, J. M & Paraje, G & Rodríguez-Lesmes, P, 2022. "Inequality of the crowding-out effect of tobacco expenditure in Colombia," Documentos de Trabajo 20304, Universidad del Rosario.
    9. Adem Aksoy & Abdulbaki Bilgic & Steven T. Yen & Faruk Urak, 2019. "Determinants of Household Alcohol and Tobacco Expenditures in Turkey," Journal of Family and Economic Issues, Springer, vol. 40(4), pages 609-622, December.
    10. Nadeem Ul Haque & Faheem Jehangir Khan (ed.), 2022. "RASTA Local Research, Local Solutions: Energy Issues, Volume I," PIDE Books, Pakistan Institute of Development Economics, number 2022:11.
    11. Muhammad Jami Husain & Biplab Kumar Datta & Mandeep K Virk-Baker & Mark Parascandola & Bazlul Haque Khondker, 2018. "The crowding-out effect of tobacco expenditure on household spending patterns in Bangladesh," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-15, October.
    12. Koch, Steven & Alaba, Olufunke, 2010. "On health insurance and household decisions: A treatment effect analysis," Social Science & Medicine, Elsevier, vol. 70(2), pages 175-182, January.
    13. Ignacio Lozano-Espitia & Juan Camilo Restrepo Salazar, 2016. "El papel de la infraestructura rural en el desarrollo agrícola en Colombia," Coyuntura Económica, Fedesarrollo, vol. 46(1), pages 107-147, June.
    14. Jian Jiu Chen & Sai Yin Ho & Wing Man Au & Man Ping Wang & Tai Hing Lam, 2015. "Family Smoking, Exposure to Secondhand Smoke at Home and Family Unhappiness in Children," IJERPH, MDPI, vol. 12(11), pages 1-14, November.
    15. Tymon Słoczyński, 2015. "The Oaxaca–Blinder Unexplained Component as a Treatment Effects Estimator," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 77(4), pages 588-604, August.
    16. Finocchiaro Castro, Massimo & Guccio, Calogero & Rizzo, Ilde, 2023. "“One-size-fits-all” public works contract does it better? An assessment of infrastructure provision in Italy," Journal of Policy Modeling, Elsevier, vol. 45(5), pages 994-1014.
    17. Pécastaing, Nicolas & Salavarriga, Juan, 2022. "The potential impact of fishing in peruvian marine protected areas (MPAs) on artisanal fishery poverty during El Niño events," Ecological Economics, Elsevier, vol. 202(C).
    18. Gabriele Spilker & Tobias Böhmelt, 2013. "The impact of preferential trade agreements on governmental repression revisited," The Review of International Organizations, Springer, vol. 8(3), pages 343-361, September.
    19. Fe, Hao, 2023. "Social networks and consumer behavior: Evidence from Yelp," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 1-14.
    20. Thales A. P. West & Sven Wunder & Erin O. Sills & Jan Borner & Sami W. Rifai & Alexandra N. Neidermeier & Andreas Kontoleon, 2023. "Action needed to make carbon offsets from tropical forest conservation work for climate change mitigation," Papers 2301.03354, arXiv.org.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:plo:pone00:0222000. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: plosone (email available below). General contact details of provider: https://journals.plos.org/plosone/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.