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The demand for cigarettes in california and behavioural risk factors

Author

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  • Teh‐Wei Hu
  • Qui‐Fang Ren
  • Theodore E. Keeler
  • Joan Bartlett

Abstract

This study contributes to the understanding of the demand for cigarettes by taking into account the interdependence of smoking and other behavioural risk factors. Information on smoking and other behavioural risk factors including drinking, alcohol use, and obesity were obtained from the California Behavioural Risk Factor Survey for the period 1985–91. A monthly cigarette price index for California was constructed based on data obtained from the Bureau of Labor Statistics. A two‐part model was used to examine separately the effect of price on the decision to be a smoker, and on the amount of cigarettes smoked by smokers. The overall price elasticity of cigarettes was estimated at −0.46, with a price elasticity of −0.33 for smoking participation and of −0.22 for the amount of cigarettes consumed by smokers. The inclusion of other behavioural risk factors reduced the estimated price elasticity for smoking participation substantially, but had no effect on the conditional price elasticity for the quantity of cigarettes smoked.

Suggested Citation

  • Teh‐Wei Hu & Qui‐Fang Ren & Theodore E. Keeler & Joan Bartlett, 1995. "The demand for cigarettes in california and behavioural risk factors," Health Economics, John Wiley & Sons, Ltd., vol. 4(1), pages 7-14, January.
    • Handle: RePEc:wly:hlthec:v:4:y:1995:i:1:p:7-14
    DOI: 10.1002/hec.4730040102
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    References listed on IDEAS

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    Cited by:

    1. James Lightwood & Stanton A Glantz, 2013. "The Effect of the California Tobacco Control Program on Smoking Prevalence, Cigarette Consumption, and Healthcare Costs: 1989–2008," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-11, February.
    2. Elena Cottini & Paolo Ghinetti, 2020. "Health Effects of Risky Lifestyles and Adverse Working Conditions: Are Older Individuals More Penalized?," British Journal of Industrial Relations, London School of Economics, vol. 58(4), pages 973-1003, December.
    3. Cottini Elena & Ghinetti Paolo, 2017. "Is it the Way You Live or the Job You Have? Health Effects of Lifestyles and Working Conditions," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 17(3), pages 1-20, July.
    4. Woojin Chung & Hanjoong Kim & Seungji Lim & Sunmi Lee & Kyungsook Cho, 2009. "Factors influencing cigarette smoking and quantified implications for anti-smoking policy: evidence from South Korea," International Journal of Public Health, Springer;Swiss School of Public Health (SSPH+), vol. 54(6), pages 409-419, December.
    5. Robert W. Paterson & Kevin J. Boyle & Christopher F. Parmeter & James E. Neumann & Paul De Civita, 2008. "Heterogeneity in preferences for smoking cessation," Health Economics, John Wiley & Sons, Ltd., vol. 17(12), pages 1363-1377.

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