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Demand for cigarettes: a mixed binary-ordered probit approach

Author

Listed:
  • Panagiotis Kasteridis
  • Murat Munkin
  • Steven Yen

Abstract

This study analyses the demand for cigarettes fitting observed zero outcomes with a trivariate model consisting of an equation for the starting smoking decision, an equation for the quitting decision, and an equation that models the level of cigarettes consumed. Five competing specifications are considered to explain level, with the ordered probit, which accommodates pile-ups of counts in the dependent variable, providing the best fit. Marginal effects of explanatory variables are calculated providing strong evidence of race and gender differences in consumption patterns. The estimated marginal effects are robust to alternative categorizations of the level of cigarettes.

Suggested Citation

  • Panagiotis Kasteridis & Murat Munkin & Steven Yen, 2010. "Demand for cigarettes: a mixed binary-ordered probit approach," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 413-426.
    • Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:413-426
    DOI: 10.1080/00036840701704402
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    References listed on IDEAS

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    1. Andrew M Jones, 1995. "A microeconometric analysis of smoking in the UK health and lifestyle survey," Working Papers 139chedp, Centre for Health Economics, University of York.
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    Cited by:

    1. Andrew K.G. Tan & Steven T. Yen & Abdul Rahman Hasan, 2016. "Cigarette and Alcohol Expenditures in Malaysia: Implications for Anti‐Smoking and Drinking Policies," Asian Economic Journal, East Asian Economic Association, vol. 30(4), pages 401-421, December.
    2. Belayet Hossain & Laura Lamb, 2012. "The Impact of Human and Social Capital on Aboriginal Employment Income in Canada," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 440-450, December.
    3. William Greene & Mark N. Harris & Preety Srivastava & Xueyan Zhao, 2018. "Misreporting and econometric modelling of zeros in survey data on social bads: An application to cannabis consumption," Health Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 372-389, February.
    4. Adiqa Kausar Kiani & Asif Sardar & Wasim Ullah Khan & Yigang He & Abdulbaki Bilgic & Yasemin Kuslu & Muhammad Asif Zahoor Raja, 2021. "Role of Agricultural Diversification in Improving Resilience to Climate Change: An Empirical Analysis with Gaussian Paradigm," Sustainability, MDPI, vol. 13(17), pages 1-15, August.
    5. William H Greene & Mark N Harris & Preety Srivastava & Xueyan Zhao, 2013. "Econometric Modelling of Social Bads," Bankwest Curtin Economics Centre Working Paper series WP1305, Bankwest Curtin Economics Centre (BCEC), Curtin Business School.
    6. Yanjun Ren & Bente Castro Campos & Jens-Peter Loy, 2020. "Drink and smoke; drink or smoke? The interdependence between alcohol and cigarette consumption for men in China," Empirical Economics, Springer, vol. 58(3), pages 921-955, March.

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