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Individual behaviour and tobacco consumption: A panel data approach

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  • Jose M. Labeaga

Abstract

This paper considers estimators of tobacco demand equations using Becker and Murphy's model of addiction with a complete panel of households for Spain. With these tools, we face two main problems: first, the endogeneity of past and future consumption and, second, the limited‐dependent variable. To control these problems simultaneously is difficult and we proceed to confront them separately. We follow an instrumental variable approach (which also allows us to control for measurement errors in variables and non‐independent effects) to tackle the first and we use a consistent within‐group procedure to obtain the parameter vector of the structural form, once we have estimated T‐Tobit models for the reduced form in order to deal with the limited‐dependent variable problem.

Suggested Citation

  • Jose M. Labeaga, 1993. "Individual behaviour and tobacco consumption: A panel data approach," Health Economics, John Wiley & Sons, Ltd., vol. 2(2), pages 103-112, July.
    • Handle: RePEc:wly:hlthec:v:2:y:1993:i:2:p:103-112
    DOI: 10.1002/hec.4730020204
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    Cited by:

    1. David Aristei & Luca Pieroni, 2009. "Addiction, social interactions and gender differences in cigarette consumption," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 36(3), pages 245-272, August.
    2. Pierani, P.; Tiezzi, S.;, 2017. "Rational addiction and time consistency:an empirical test," Health, Econometrics and Data Group (HEDG) Working Papers 17/05, HEDG, c/o Department of Economics, University of York.
    3. Piccoli, Luca & Tiezzi, Silvia, 2021. "Rational addiction and time-consistency: An empirical test," Journal of Health Economics, Elsevier, vol. 80(C).
    4. Badi H. Baltagi & Ingo Geishecker, 2006. "Rational alcohol addiction: evidence from the Russian longitudinal monitoring survey," Health Economics, John Wiley & Sons, Ltd., vol. 15(9), pages 893-914, September.
    5. Sergio Jimenez & José M. Labeaga, 1994. "Is it possible to reduce tobacco consumption via alcohol taxation?," Health Economics, John Wiley & Sons, Ltd., vol. 3(4), pages 231-241, July.
    6. Miura, Takahiro, 2019. "Does time preference affect smoking behavior? A dynamic panel analysis," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 170-180.
    7. Jones, Andrew M., 1999. "Adjustment costs, withdrawal effects, and cigarette addiction," Journal of Health Economics, Elsevier, vol. 18(1), pages 125-137, January.
    8. Jose Julian Escario & Jose Alberto Molina, 2001. "Testing for the rational addiction hypothesis in Spanish tobacco consumption," Applied Economics Letters, Taylor & Francis Journals, vol. 8(4), pages 211-215.
    9. Christian Bantle & John P. Haisken-DeNew, 2002. "Smoke Signals: The Intergenerational Transmission of Smoking Behavior," Discussion Papers of DIW Berlin 277, DIW Berlin, German Institute for Economic Research.
    10. Andrew M. Jones & José M. Labeaga, 2003. "Individual heterogeneity and censoring in panel data estimates of tobacco expenditure," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 18(2), pages 157-177.
    11. Yen, Steven T., 1997. "Cigarette Consumption by U.S. Men," 1997 Annual Meeting, July 13-16, 1997, Reno\ Sparks, Nevada 35799, Western Agricultural Economics Association.
    12. Steven T. Yen & Andrew M. Jones, 1996. "Individual cigarette consumption and addiction: A flexible limited dependent variable approach," Health Economics, John Wiley & Sons, Ltd., vol. 5(2), pages 105-117, March.
    13. Kohei Enami & John Mullahy, 2009. "Tobit at fifty: a brief history of Tobin's remarkable estimator, of related empirical methods, and of limited dependent variable econometrics in health economics," Health Economics, John Wiley & Sons, Ltd., vol. 18(6), pages 619-628, June.
    14. José Escario & José Molina, 2000. "Estimating anticipated and nonanticipated demand elasticities for cigarettes in Spain," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 6(4), pages 782-793, November.
    15. Namkee Ahn & Josée Alberto Molina, "undated". "Smoking in Spain: Analysis of Initiation and Cessation," Working Papers 2001-02, FEDEA.

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